Level 1 coins have the same diminishing returns that level 2 coins have. So 1,000 level coin in one year gives 200. Then 300 in year two. Then 350 year 3.
Far less than level 2 coins. These are more for long term holders. Assuming that you burn the additional coins from the Level 2.
1 Level 2 coin in one year gives 1,000 coins. You burn that. Now you have 1 coin that will give you 500, and one that will give you 1000.
In 8 months you get enough to burn another one. You now have a coin that gives 1000, one that gives 700 and one that gives 300.
Now in 6 months you get enough to burn one. And so on and so forth, this is the best long term ratio to create income.
Eventually you will be generating enough LV1 to allow for monthly, weekly, or even daily burning.
If the coin catches on, you might be able to live off of the residual if you stick to this game plan from day 1 and never falter.
Ah ok so both coins have diminishing PoS rewards, interesting.
Thanks for clarifying.
*edit* - Another question: This means that the initial reward for Lv1 coins must be higher for it to decrease over time to average out ~200 a year?
I presume, since the second year they yield 15%/yr (on average) that when they are first created they must effectively gain 22.5%/year, gradually declining to 17.5%/yr? Second year would be 17.5% --> 12.5% etc.
Coins created from *any* Lv1 coin will start at 22.5%/yr effective PoS regardless of the coin that minted them?