Quote from: Griffith on December 08, 2014, 12:14:39 AM

Quote from: mikeymillie on December 06, 2014, 11:17:43 PM

Stake is not interest. It is a superficial mimicry of interest.. Coins cannot earn interest until one of them comes up with a way to lend them at a contract interest rate and have them still be spendable, but revokable (or rate adjustable) if the terms are not met. This would never work with anonymity unless it becomes possible to enforce the contract terms on an anonymous wallet or address through some kind of escrow mechanism. Even then there's no way to estimate default risk and thus set an interest rate to lend them at.

i may be mistaken for this coin, as i didnt look it up before posting this. but for other pos coins i have worked with. interest is calculated based on how much you stake. so more stake means more interest.

Quote from: CryptoJohn on December 07, 2014, 01:22:05 AM

@Griffith

lol i appreciate that gif

This is what i mean by it is a simulation of interest, not actual interest. It's just mimicking the "last mile" part of how interest payments work, not the rest of the underlying economic mechanism that drives the market to set interest rates in the first place.

I'm not trying to criticise stake, as it has its own crypto-specific economic niche (securing the network), but it's not actually "interest" at all. Crypto still needs a genuine lending mechanism in order to have a way to earn interest as the rest of the financial world would understand it, and it's a big missing piece in the ecosystem.