Quote from: kora2 on November 04, 2014, 12:35:10 AM

Quote from: DarkhorseofNxt on November 03, 2014, 11:03:18 AM

Anyone else wants to add their point of view?

We could consider learning from Hyperstake - https://bitcointalk.org/index.php?topic=678849.0 - I like the 'experimental' aspect to what they're trying to do with PoS through having a very large stake %, but also having inflation control via a maximum block reward, and max generation.

The incentive is definitely to hold your coins to get the high stake, (so there's little dumping), but the maximum block reward keeps inflation under 'relative' control, so the ECONOMICS of Hyperstake are quite different to other PoS coins.

IMO we could do something similar to Hyperstake with high interest % & maximum stake amounts, but 'extend' it, maybe have interest at 1000% and max stake at 1500.

IMO coin tech innovation in this community is always the main focus, but innovation can also come from economic incentives.

These are Hyperstake's vital statistics:
-X11 PoW blocks already phased out
-Proof of Stake Blocks Only
-90 Second Block Time
-Minimum Age - 8.8 days (rounded)
-Maximum Age - 30 days
-Annual Interest Rate - 750%
-Maximum Stake Subsidy - 1,000 HYP
-Recommended Block Size - 1,000-4,000 HYP

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Inflation control is a very necessity for coins with high interest. The higher the interest rate of a cryptocurrency, the worst the risk of falling into hyperinflation. Some mechanisms have been created to counter this risk. In HyperStake, the two chosen mechanism are max subsidy and max generation.

Max generation is another area we could experiment with, just by changing the coin parameters.

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max generation is, alongside max subsidy, one of the two inflation control mechanisms in HyperStake. Even if there is no limit to the amount of coins (HyperStake, like most high-PoS coin, is an inflationary coin, so no risk of people screaming "premine!" after several years), every day, there will be no more than 960,000 HYP (960 blocks) new coin created. dixit presstab The max generation by definition is when each stake will be 1,000 HYP, thus hitting the ceiling each time. Right now we are about halfway to max generation. I don't think we will hit max generation for a long time, because people will always be trying to size their blocks small enough to get rewards that are less than 1,000. I think what really is going to happen is that there will be a fight to stay under max generation, this will mean smaller blocks, and smaller blocks will mean higher difficulty. This is turn means the difficulty will constantly go higher. Since this is PoS, this cannot be offset by "bigger miners" (as in PoW) so adjustement will go by taking longer.

source: http://hyperstake.wikia.com/wiki/Inflation_control

But Kora, what is the point of just holding and staking, if they dont spend. How do they secure the nodes? What is the incentive for the nodes?

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The max generation by definition is when each stake will be 1,000 HYP, thus hitting the ceiling each time. Right now we are about halfway to max generation. I don't think we will hit max generation for a long time, because people will always be trying to size their blocks small enough to get rewards that are less than 1,000. I think what really is going to happen is that there will be a fight to stay under max generation, this will mean smaller blocks, and smaller blocks will mean higher difficulty.
This is turn means the difficulty will constantly go higher. Since this is PoS, this cannot be offset by "bigger miners" (as in PoW) so adjustement will go by taking longer.

This is something like account limit. One gets rewarded for keeping the max account to the limit. Something we can look into.

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IMO we could do something similar to Hyperstake with high interest % & maximum stake amounts, but 'extend' it, maybe have interest at 1000% and max stake at 1500.

We will have a lot of coins end of the day but lesser value by increasing more that has no function. This can be done when the value of the coin is very high imo. Something we can consider when we have done the fiat-token system in place.

bee,

All these parameters can be changed, right? Maybe you can highlight, which can be changed and which are the ones that cannot be changed. Might be helpful.