lol yeah I suppose I am being 'technically correct' here but the big picture view is that yes, PoW mining does become heavily disincentivized compared to PoS and PoT once the reward is down to the last few short term halvings.  If the PoT 500 FLT limit doesn't get adjusted (reduced) by then, I expect that we'll have a mostly PoS-driven model until we start getting merchant connectivity onboard with a partner like moolah.ch. 

It started from day 1,  the PoW phase doesn't end and the PoS begins - they both work side by side, though PoW's contribution gets smaller and smaller.

Same goes for the Proof of Transaction phase - it's already in effect and gradually takes over more and more of the mining reward shares until the two systems are about even with each other and with PoS.

thekidcoin, please correct me if I got that wrong, I am extrapolating from what I understand is happening now into a future stable state scenario of the network.

Minor clarification (I made this same mistake myself) - the PoW phase doesn't actually end, though the era of large block rewards certainly does.  The code as it is now has a final reward payout of 20 FLT - though I am not sure how this fits in with the apparent eternal halving that still happens after the kickstart PoW slope levels off.

    Block 1 - 3263: Random 500 5000 (1 minute blocks)
    Block 3264 - 22000: Random 1000 10000 (Begin 2 minute blocks)
    Block 22001 - 34750: Static reward 5000
    Block 34751 - 39791: Static reward 2500  <- almost over, currently at block 39,479
    Block 39792 - 44832: Static reward 1250
    Block 44833 - 49873: Static reward 625
    Block 49874 - 54914: Static reward 312.50
    Block 54915 - 59955: Static reward 156.25
    Block 59956 - 64996: Static reward 78.125
    Block 64997 - 70037: Static reward 39.0625
    Block 70038 - 332838: static reward 20
    Halving every 262800 blocks (so does it go to 10, then 5, then 2.5, etc? )

the demoscene crew?  if so, WIN   

or do you mean the Fairlight CMI?   still, WIN

I think I am starting to arrive at a simple and logical way to explain what PoT is to people who are only loosely familiar with mining (which is most bitcoiners and many alt people as well). 

Proof of Transaction serves the same beneficial function that mining does: it secures the blockchain by confirming transactions. Except instead of rewarding an energy-wasting and rapidly centralizing arms race between miners solving useless busywork calculations, it rewards the actual end users of the coin for doing a useful service that they naturally would do anyway, which is spending it.   Mining serves well its purpose to bootstrap the coin but like training wheels on a bicycle, once the coin matures and gets used heavily, mining starts to cause more problems than it solves as seen by the enormous cost of running the Bitcoin network as well as its tendency for mining to become centralized over time. All workarounds, such as ASIC resistance, which still preserve the role of mining as the only securing proof system, only serve to delay the problem. They do not attempt to fundamentally solve it in the way that a PoT/PoS coin maturity life cycle (such as the one Flutter has created) does. 

A bit wordy still, but it makes more sense to me as someone trying to explain why PoT is worth a look, than just telling people it gives you 'cash rewards' - while this is technically true it draws comparisons to cash-back rewards cards - and then people get disappointed when they discover that not every transaction generates a PoT reward.  PoT is really a form of mining that gives control back to end users and to predictable economic incentives.  Just like in 'real' money systems, with PoT - the more the users spend, the healthier the economy gets as it increases the velocity of money which thus transmits pricing signals more efficiently, etc.  It's like caffeine for money.

> Isn't this coin expected to be 100% PoS at some point, so point 4 would render PoT useless?

No, I thought this was the case also but the PoW phase never ends, it just halves all the way down to 20 block static rewards eventually.  I believe the PoT rewards are the same as any block reward for PoW; that is, you get whatever the PoW mining reward is at that time if you get lucky enough to PoT "mine" a block on your transaction.   I expect thekidcoin will continue to fine tune this reward system as it gets used in real life - it's hard to forecast well in advance how these use cases will play out so the parameters of the rewards may well change over time to close any gameable loopholes that may get discovered. 

You know I was referring to cinni, not flutter, (cinni being manipulated from 3k to 20k), right? 

Whenever you see a whole bunch of enthusiasm out of nowhere for a coin that has nothing particularly special going on for it, you are seeing the work of an experienced and coordinated pumping team.   It only takes 10 or 20 BTC on hand and a solid chunk of the coin's circulation under the groups control (25% is about enough, though some of them have premine on their side too, working with the dev though the dev never acknowledges it) to make it do whatever they want it to.  

Throw in a few people spending 24/7 time on forums and trollboxes chatting it up under 4 or 5 sockpuppet accounts each, while the investors buy in small but noticeable chunks (and since they aren't selling their base control stake at this stage, they are buying from others and getting even more control), and presto, you have your bait:   A coin that 'everyone' talks about, which seems to be responding to the buzz with a higher and higher price (the 'pre pump' phase).  Eventually mania kicks in and the pumpers ride the rocket  up to a 10x gain whereupon they all dump around 1/3 of the original control stake at the agreed upon point.  Repeat the process again on the bounce for another bite and suck at the noob's willing and exposed necks.  The whole thing rests on the fact that 90% of the people who buy into pumps never do any research at all, and just make up or accept whatever excuse they need to justify buying a no-future shitcoin so they can use that excuse to ignore their better instincts telling them its a trap.

5% per year, minimum (can be higher, cannot be less).  Stake starts being established after 30 days of coin aging, 90 days to full stake weight.  This really should be an answer featured in the thread opening post,  the question comes up a  lot.  It's almost like an afterthough "Oh, yeah, we have a PoS reward too, if you're into that sort of thing."  But it is there.

The relevant code is here:  https://github.com/thekidcoin/fluttercoin/blob/dc00a736c9373bb16bdd9200d1bd21f452d904a3/src/main.cpp#L44

Yup...  I disregarded FLT at first because of the confusing name and butterfly effect summary description, whatever that was supposed to mean.  Although I think I get it now, I am still not sure that analogy helps the message or just confuses it with a lottery game, but once I got past that and looked at Proof of Transaction on a more abstract level I realized its potential to be used for a lot more than even quasi-random spending rewards (though that is already plenty good enough, since crypto is suffering from many obstacles to merchant adoption as it is - so one more incentive to counter them is very welcome).  It can be a third party payment channel, a built-in 'contract' system to pay out a portion of any transaction to a third party without having to mess around with escrow or muti-sig wallets.  It will need some work to get there (the ability to switch between the default system of high payout random rewards and an optional low payout guaranteed reward for PoT would be the key).  This could expand its scope of application way beyond even 'cash back' rewards, and the market will definitely take note of this. It's like a super simple version of Etherioum that does one useful thing well, without all the hairy corner cases and as yet undiscovered bugs that something as complex as ether is certain to have.

Oh and it has PoW and PoS too, with very attractive stake rewards    

Seconding the community importance.  This cannot be stressed enough.  Look at poor beaten down reddcoin with a horrible ROI for traders, yet the community remains undeterred even though the coin has absolutely nothing going for it on a technical level (barebones litecoin copy and paste clone).  Yet they might be able to get traction if they keep up the community effort.  Yet here is Flutter with a genuinely amazing and interesting innovation to bring to cyptocurrency - one that is badly needed in fact (because it corrects the problem that there is too much incentive to hoard in deflationary currencies, so no merchant adoption happens for a long time if ever). But all people want to talk about is "what's the price going to be?  when is the multipool launched?  aww dumping again?"    

People, if that's all you care about, go buy some yellowcoin or whitecoin or cinnicoin or whatever the P&D lemmingcoin flavor of the week is. Just admit to yourself you are only gambling here, nothing more than track betting but with "coins" instead of horses, and you have little interest or grasp of what cryptocurrencies bring to the internet nor any idea what separates a good, potentially significant innovation that will pay off long term like Proof of Transaction from a worthless one that is only good for a quick buck (if that), like a BC-style multipool.  If you have even once considered buying a dead-end turd like potcoin or one of the zero-innovation copies of blackcoin, you are not going to enjoy holding Flutter for long.  

If you lost a bunch of money in Gox or in cryptorush, or in bad trading overall, and are hoping for a hail mary play with a 10x return to make you whole again, buy FLT now and wait a few months.  If you are expecting anything at all to happen by this weekend, or after the multipool launches, go somewhere else with your gambling because you are very likely to be disappointed and end up selling more cheap coin at a loss to the more patient investors among us.

If you want to see Flutter succeed then i recommend reading up on the (VERY short) whitepaper that explains Proof of Transaction, learn what it is and how it works so that you can explain it to others in a coherent way.  And realize that there are only three main activities on which a proof system can be created in crypto:   Mining,  Saving, and Spending.  Mining was invented by Bitcoin.  Saving (Proof of Stake) started with Peercoin (I think... might have been an earlier lesser known coin).  And that leaves Spending - Proof of Transaction - which is made possible by Fluttercoin.  This isn't some little twist on some other idea or a stupid logo or theme or meme, it's a potential pillar of the entire ecosystem here.  

My mistake,  I thought this coin halved until there was no reward left, but that's not correct.  Still, the last halving usually means a coin drops off predatory multipool radar screens so there is one less factor to keep an eye on (and to worry people about being unexpectedly dumped on). 

Tipping and merchant use will really be fascinating with the PoT rewards delivering more and more new coins into the economy of spenders rather than of savers.  As someone who thinks that inflation isn't necessarily bad in a thriving economy (because it accelerates the overall velocity of money, and decreases the importance of absolute price for goods and services with respect to the currency while increasing their importance of their value with respect to each other) I like the idea of a little inflation. Especially as PoT 'pays you back' as a spender who is doing the work of price evaluation of goods, instead of paying back people who just sit on piles of currency and let the rest of the economy do the work of being an economy while they just charge rent.

If you are interested in Flutter just to speculate and dump out at the peak, expect to be disappointed for a while.  BC's run was something you do not see very often because it had a lot of factors behind it, some organic, some artificial, some pure chance - and various coincidences and incentives have to line up just right.

I don't see this happening with FLT any time soon. Maybe after the PoW phase ends things might shake up a bit, but by then who knows.  Maybe China does yet another 180 on crypto or MtGox comes back from the dead to feast on more suckers again; maybe PoT becomes front page discussion on CoinDesk and bleeds over into MarketWatch and WSJ coverage the way Scrypt-N did (assuming FUD mongers don't succeed in mislabeling it as 'just a lotto game' which they are already trying to do).  6 weeks is an eternity in crypto and anything can happen good or bad.

Thank you for not using a huge logo and announcement that clutters up the thread.  I scroll past those but took notice of yours (I don't have mining gear so I can't join but wanted to acknowledge your courteous and low key announcement ).

Digging a little more, over the span of about 2 hours when the price went from about 1400  to  1200 I got curious who was selling all this coin so I snapshotted the top 100 balances at both ends of the period.

Out of all the top 100 addresses, only the following changed balances in any way, and did so in the following amounts:

Address                            |   Start bal   |  Ending bal   |  Gain/Loss/Consolidation
------------------------------------------------------------------------------------------
FEpZtC6JHLprKLeczimSV5bzkTHADrDDz5 | 20250000 flt  |  20200000 flt | Loss 50,000
FCB69kf2XQ2MGvu3zBgVZJvJecU93jTE9p |  6617998 flt  |   6572479 flt | Loss 45,519
F9DRvQqbohVZt3PkUEP9qsGWh75iM5vjTC |  5802746 flt  |   5817794 flt | Gain 15,048
FCmTwSDpu3zUUUCSnmJPhY6rdP5sksb7Sw |  1655647 flt  |   1640543 flt | Loss 15,104
FTUWqgKpuCtoTAkziD1Vrni5JVX2dMcDC4 |  1583417 flt  |   1543417 flt | Loss 40,000
FGwQ5aDA6CKh5nXv4C5SupvX9eLsHydJtQ |  1350000 flt  |   1360000 flt | Gain 10,000
FG8iHJAVpUFWbRokD3RmscPmGys2tyaqoK |   571125 flt  |   1273224 flt | CIn 702,099 (consolidation in from 2 addresses below)
FFfHe4ktvbCns2g6RhYgadLiprdfBGkKvQ |   606228 flt  |    606780 flt | Gain 553
FCWeGgLYpgg7hBKYTihC8nYNv3rkpyE2xM |   401998 flt  |         0 flt | COut 401,988 (consolidation out to other address)
FTc4p1ch5XxSSwxsRrZ38ENkeoETWVi3mW |   396249 flt  |    466249 flt | Gain 50,000
FV2J39sgF8YMnQuboJhwPuNQbtiuuEYiFX |   300099 flt  |         0 flt | COut 300,099 (consolidation out to other address)
F9CtShEbXvjM7VxRnccmnJ6K5JgKkvDxKQ |   257500 flt  |    267500 flt | Gain 50,000

None of the other top 100 address balances changed at all apart from these few.   The rest stayed exactly the same.  I used this tool  to  get balances:  http://agran.net/flt_getbalance.php?top=1000  (I only tracked the top 100, maybe there was more action lower than that but I am only interested in what large stakeholders are doing under these 'panic' situations and predictably, they are doing nothing much at all   )

My take on this is

1. that very few large holders are selling off right now, and if so it is in very small amounts relative  to  their balances. 
    The only large losses appear  to  be address consolidation. 
    The rest of the losses seem  to  be offset somewhat by gains elsewhere (winners getting cheap coin from losers  )

2. The net selloff volume from 1400 to 1200 was a total of about 30 BTC's worth on Mintpal and Cryptsy combined.   
    This is a tiny, tiny fraction of the entire amount of Flutter in circulation (about 2,200 BTC equivalent). 
    That means there's only a few people - my guess is 10 ot 15 at most - who are actually making the market value change at all through dumping (or pumping for that matter).   
    Almost 99% of the FLT in circulation is not participating in this price fluctuation in any way. 

The biggest wallet with address FEpZtC6JHLprKLeczimSV5bzkTHADrDDz5  dropped 50k coins in the past 2 hours, from 20250k FLT to 20,200k FLT

These pool announcements have to be so f-ing huge all the time?   

A cool twist is if the Flutter tip happens to spawn a PoT reward, the tipbot  would split that with the tipper and the tippee.   I know i make it sound so easy and it's probably a b!tch to do

godwits are you the person running fluttercoinbounty.com?

on a more serious note, i think some of your questions could be addressed by checking out www.fluttercoinbounty.us and donating some FLT there if you want to help move some of those ideas along.