there's obviously noobs who are not following this discussion with useful knowledge.
1. when you succesfully stake, the reward is based on three things.
- the amount that is staking, ie the amount that was transacted
- the age of that amount in relation to 2000% per year, ie one day will be 2000/365, one week will be 2000/52
so if you have a 5 coin amount stake after 1 day the return will be
5 coins * ( 2000% / 365 ) = 5*(20/365) = 0.273972602739726
a cap on this reward will then limit the stake reward to that cap value, the above example is not at risk of being capped.
however, the #1 richlist which obviously belongs to iGotSpots earned 1222 coins in a single stake in roughly 1 day
http://www.presstab.pw/phpexplorer/CUBE/tx.php?tx=6653ac00faff412ca08fbb95aae4a221fd2c9a2505d430d6e706454d72bb942023,143.6603 coin * (2000% / 365) =roughly calculated=> 23143 * (20/365) = 1265 (not exactly the same figures as above, but roughly close enough)
this stake would have been highly capped. so iGotSpots would have lost 1212 coins with a 10 coin cap reward.
-=-=-
The other thing to consider is how compound interest works in relation to staking coins.
Compound interest is when you get interest on the interest you have already received.
a 2000% return per annum with NO compounding would return you exactly 2000% interest.
=> 5 coins would then earn 100 coins in one year, giving you 105 coins.
WITH compound interest, the actual return is based on how often you receive interest.
you receive interest on the interest you have already recieved.
if you received a daily interest return (based on 2000% annual rate)
=> 5 coins would then become 1,429,686,276.18 coins in one year.
THAT IS A STUPENDOUS DIFFERENCE.
the actual return is based on how much you are staking, and how often it successfully stakes.The most succesful way to compound your staking coins, is to stake them as often as you can.
And the best way to do that is to keep them in a single clump.
A single clump of 100 coins will stake quicker than 20 clumps of 5 coins.
simply put,
exponential growth benefits the richer because their returns are higher in simple numbers.
eg
5 coins compounding monthly over a year +> 646,539.1
100 coins compounding monthly over a year => 12,930,781.92
from a difference of 95 coins between initial stakes to a difference of 12284242.82 coins
-=-=-
How a cap might influence stake returns.
A cap will limit the maximum amount of coins you can receive for a single reward
the transaction above had a stake return of 1222 coins, if there was a 10 coin cap in place, it would have received the maximum 10 coins.
The maximum cap will be reached by staking 365 coins in one day.
however at this juncture, the above 23143 coins staked in about one day, so the difficulty seems to suggest those 365 coins will stake in about 23143/365 days +> 63.405 days
At this point the maths becomes a head fuck as you then attempt to juggle the correct stake size vs diffictuly vs compounding returns vs max capped reward.
THE important thing is that a cap will benefit small stake holders, because in the attempt to receive maximum cap reward the large stakes will be divided into many smaller stakes.
THIS will reduce income for larger owners as those many smaller stakes will reduce the compounding interest effects of larger stakes.
THIS will benefit small holders. Small coin owners will not be as strongly effected as Large coin ownes.
...
vs. spots idea of
Anyway, I like the idea of having a minimum coin age to get the 2000% and giving a flat reward of like 1 CUBE to those underneath it
If we set that to 10,000, for example, then an input of 5000 would have to not stake for two days to get the higher rate, an input of 1000 would have to wait 10 days, etc, etc
This value could also be on a sliding scale. Like, you must have 2% of the current block number to qualify for higher rates or something. Currently that would be 6927.72 CUBE. That's actually a pretty good idea to make the scale slide up with time
this requires some consideration.
as the coin supply grows, the amount of staking inputs will grow, the coin code will continue to spit the inputs.
this will increase difficulty by increasing coin weight and number of inputs.
the increase in difficulty will result in a natural increase in coin age for succesful inputs.
whether this will reduce hyperinflation to a useful level is another question?
again the maths involved are a head fuck.
this does seem again to reward the richer holders, it seems to merely reduce the possible compounding timeline. ie compounding interest is still available but less often.
exponential growth is best appreciated by the richer holders.
--edit
not to forget that currently most stake returns are under 1 coin, will they be capped to 1 coin ?
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. Would be right to prevent them to be swapped and dumped (for example make new hardfork in old DRZv2.4 chain, and introduce a new wallet, which invalidate transactions from those addresses).
