Yeah, I think the allocation of NXT needs some spreading.  Developers should send some random 1M NXT chunks out to random addresses in the network.

Fixed.

sha256 sum?

Posted about Nxt mining profitability.  Please post your feedback.

https://bitcointalk.org/index.php?topic=350020.new#new

Nxt will implement colored coins, a decentralised blockchain based stock exchange.  You will be able to exchange altcoins using the Nxt block chain, i.e., NXT will be the base currency for a massive p2p on-line alt coin stock exchange.

Reference: https://bitcointalk.org/index.php?topic=345619.0

Nxt is purely proof-of-stake and, therefore, requires no CPU for mining.  The block reward is the transaction fee.  Currently, NXT requires a transaction fee of at least 1 NXT for any transaction.

The number of blocks a miner can mine depends on the number of NXT the miner owns (i.e., his/her stake).

The formula for the number of blocks a miner can mine is

blocks_per_day(STAKE) = STAKE*(AVG_BASE_TARGET/100)/694444
= STAKE*AVG_BASE_TARGET/69444400

STAKE is the number of NXT you own.

The AVG_BASE_TARGET is a network parameter that varies over time that represents how much of the money supply is active for POS mining.  You get this number by averaging the last K base targets (the little red and white target icon under "Recent blocks").

Reference: https://bitcointalk.org/index.php?topic=345619.msg3726410#msg3726410

Now the question is: how many Nxt could you expect to mine per day if Nxt becomes the defacto online exchange for crypto currency?

Each block will contain multiple Nxt, at least 1 for each transaction.  So how many transaction will there be per block?  Recent stats on the bitcoin block chain show 98753 transactions over the last 177.00 blocks.  So, that's about 557 transactions per block.

Reference: http://blockchain.info/stats

But Nxt has 1440 blocks per day (bitcoin has should have 144).  So, we can divide 98753 by the number of Nxt blocks per day: 98753/1440 = 68.57 Nxt transactions per block.

So, you could expect 68.57 Nxt transactions per block.  If Nxt is traded as much as BTC.  It could actually be more though, because Nxt could facilitate trading across all different types of crypto currency.

Our estimate for the amount of NXT per day is

nxt_per_day(STAKE) = 68.57*blocks_per_day(STAKE)

====

So for AVG_BASE_TARGET = 1000 and STAKE = 1000000

blocks_per_day(1000000) = STAKE*AVG_BASE_TARGET/69444400
= 1000000*1000/69444400 = 14.4 Nxt blocks / day

nxt_per_day(1000000) = 68.57*14.4 = 987 NXT /day

====

But, how much is 987 NXT worth?  How much could you earn per day?

Well what are the average transactions fees mined from a single bitcoin transaction?

Total transaction fees over the last 177 bitcoin blocks is 31.825982 BTC.  So that's 31.825982/98753 = 0.000322 BTC / transaction.

Reference: http://blockchain.info/stats

Nxt has 68.57 transactions per block, so we can calculate the average BTC value per Nxt block: 0.000322*68.75 = 0.022 BTC / Nxt block

Right now that is about 0.022 * 1080 =  $23.76 / next block.

So, if you get 14.4 Nxt blocks per day, then that is about $342 / day or about $10,000 / month.

There are a lot of assumptions here, but the basic parameters guessed at are:

- STAKE
- AVG_BASE_TARGET
- NUMBER OF TRANSACTIONS PER NXT BLOCK (estimated from BTC)
- VALUE OF MINIMUM NXT TRANSACTION FEE (estimated from BTC)

It will be interesting to hear your replies and all the errors you spot in my quick calculations.

Hey,  15627247923681139826 how bout a little love....  Send me some NXT 6247993745714329290

Someone should do a million NXT raffle.

But it's always the same miners (those with the highest balances) that get coins.  You'd be doing NXT a bigger service if you sent NXT to random accounts from the block chain explorer whose balances are low.

Why would anyone every spend more than 1 NXT on their transaction fee?

Thanks.  Do you have a pointer for a good technical description of POS?  Is there anything different about Nxt's POS design?

Why don't I see fees for many of the transactions showing up in the blockchain explorer?

HEIGHT   BLOCK   TSTAMP   NUMTRANS.   PAYLOAD   TARGET   Fee   AMOUNT   GENERATOR
2549   1026217694308135998   274197   0   0   1218837688   0   0   10105875265190846103
2548   3315942292627339763   273848   0   0   609418844   0   0   6785084810899231190
2547   18355738116130765589   273842   0   0   1218837688   0   0   17228894143802851995
2546   5046227733242187850   273644   0   0   609418844   0   0   4747512364439223888
2545   12996359539300965338   273634   1   128   1218837688   1   99   17228894143802851995

Thanks!

Yeah, that's not my question.

My question is about what is the rate of finding a block as a function of your account balance?  Obviously, whatever someone puts in for an tx fee varies.

BTW: Side-question; what happens if everyone just puts no tx fee?

How can I figure out rate of mining coins, e.g., interest rate on my balance?

Suppose I have N coins, what's the formula?

Anyone know?

What do you think my chances of mining a block are with those 99 Nxt?

What would my interest rate be?

Thanks!

Well, it doesn't have to be a few million.

This is a serious weakness that Nxt needs to overcome.

The wealth needs to be distributed more evenly, otherwise only a couple individuals mine all the blocks, which means that they can 51% attack the network whenever they want.  Yes, 51% attacks apply to POS as well as POW.

Could someone send me a few million Nxt to help even things out?

6247993745714329290

Thanks!

Anyway, Nxt looks like it has a lot of potential.  So, hats off to the developer.

I think the decentralised exchange will be challenging.  Is the developer confident he/she can actually do this?

Not all standards need to be followed.  Does bitcoin follow this standard?