1 LTC to explain ppcoin block reward and POS How block size is determined?

[mullick]

Ok so I have done some reading on PPcoin and Novacoin to try to find out why I am getting all these small block rewards for Bitgem mining. I have not been able to figure it out. I have been mining bitgem for the last week or so and have noticed my block reward being cut to 10%. Blocks rewards were 3 Bitgems but are now down to .3-.4 Btg and seems to be slowly increasing. I thought maybe the block reward got cut after a certain number of blocks but nothing was mentioned in the release. Then talking to another miner today He decided to mine for a bit again and got a 3btg block pretty quickly followed by 2 .4 rewards. How does this all work? The dev seem to be pretty busy as he has put out 2 client updates rather recently. I asked and got this as a response

Quote from: mullick on May 23, 2013, 07:34:34 PM
Why has to block reward changed to .3 Bitgems? I have found 2 blocks since the update and both are .37207 bitgems. WTH?

It follows ppcoin/novacoin reward scheme.

Bests,

Here is what I am talking about. I do not know if I am receiving tc fees or smaller blocks because of pos or what. I created another address for donations to my giveaway but ended upp going with another wallet in storage for that. That explains the other address

[calian]

In PPC there are proof of work blocks and stake blocks. You have to let coins sit at least 30 days without moving to start to become eligible to find a stake block. They increase in their likelihood of finding a stake block until they have sat for 90 days at which point their chances max out and do not increase further. If a stake block is found it is for about a 1% annual amount. So say you had 100 coins sit for 60 days and it finds a stake block you'd get 100*.01*60/365=0.164 coins stake reward and it will freeze your coins for about 5 days as it matures.

The proof of work blocks are the more standard kind of blocks mined by hashing. In PPC the block reward is 1/16th as much every time the network difficulty doubles so if a large amount of people are mining then these blocks can have a very low reward. I don't know how Novacoin differs from this model except that it uses scrypt instead of SHA-256 for the proof of work algorithm.

[Vycid]

In PPC there are proof of work blocks and stake blocks. You have to let coins sit at least 30 days without moving to start to become eligible to find a stake block. They increase in their likelihood of finding a stake block until they have sat for 90 days at which point their chances max out and do not increase further. If a stake block is found it is for about a 1% annual amount. So say you had 100 coins sit for 60 days and it finds a stake block you'd get 100*.01*60/365=0.164 coins stake reward and it will freeze your coins for about 5 days as it matures.

The proof of work blocks are the more standard kind of blocks mined by hashing. In PPC the block reward is 1/16th as much every time the network difficulty doubles so if a large amount of people are mining then these blocks can have a very low reward. I don't know how Novacoin differs from this model except that it uses scrypt instead of SHA-256 for the proof of work algorithm.

So there's a mechanism built into PPC to encourage people not to spend their coins?

Something tells me the developer isn't much of an economist.

[mullick]

In PPC there are proof of work blocks and stake blocks. You have to let coins sit at least 30 days without moving to start to become eligible to find a stake block. They increase in their likelihood of finding a stake block until they have sat for 90 days at which point their chances max out and do not increase further. If a stake block is found it is for about a 1% annual amount. So say you had 100 coins sit for 60 days and it finds a stake block you'd get 100*.01*60/365=0.164 coins stake reward and it will freeze your coins for about 5 days as it matures.

The proof of work blocks are the more standard kind of blocks mined by hashing. In PPC the block reward is 1/16th as much every time the network difficulty doubles so if a large amount of people are mining then these blocks can have a very low reward. I don't know how Novacoin differs from this model except that it uses scrypt instead of SHA-256 for the proof of work algorithm.

Wow I posted this hours ago and forgot about it. I just spent my last LTC But  I Mine 1+ a day So  I promise I will send It tomorrow.

On another note thank you very much for that explanation. It helps very much. Again I promise I will send it tomorrow

[calian]

So there's a mechanism built into PPC to encourage people not to spend their coins?

Something tells me the developer isn't much of an economist.

For spending there's Freicoin and for saving there's PPC. The whole idea with proof of stake is you can secure a blockchain without burning $150,000 of electricity every day like the bitcoin network currently does.

[lazydna]

In PPC there are proof of work blocks and stake blocks. You have to let coins sit at least 30 days without moving to start to become eligible to find a stake block. They increase in their likelihood of finding a stake block until they have sat for 90 days at which point their chances max out and do not increase further. If a stake block is found it is for about a 1% annual amount. So say you had 100 coins sit for 60 days and it finds a stake block you'd get 100*.01*60/365=0.164 coins stake reward and it will freeze your coins for about 5 days as it matures.

The proof of work blocks are the more standard kind of blocks mined by hashing. In PPC the block reward is 1/16th as much every time the network difficulty doubles so if a large amount of people are mining then these blocks can have a very low reward. I don't know how Novacoin differs from this model except that it uses scrypt instead of SHA-256 for the proof of work algorithm.

So there's a mechanism built into PPC to encourage people not to spend their coins?

Something tells me the developer isn't much of an economist.

Show me an investor who would hold their savings to garner 1% a year rather then invest it, and i will show you a fool.

[Balthazar]

In PPC there are proof of work blocks and stake blocks. You have to let coins sit at least 30 days without moving to start to become eligible to find a stake block. They increase in their likelihood of finding a stake block until they have sat for 90 days at which point their chances max out and do not increase further. If a stake block is found it is for about a 1% annual amount. So say you had 100 coins sit for 60 days and it finds a stake block you'd get 100*.01*60/365=0.164 coins stake reward and it will freeze your coins for about 5 days as it matures.

The proof of work blocks are the more standard kind of blocks mined by hashing. In PPC the block reward is 1/16th as much every time the network difficulty doubles so if a large amount of people are mining then these blocks can have a very low reward. I don't know how Novacoin differs from this model except that it uses scrypt instead of SHA-256 for the proof of work algorithm.

NovaCoin has dynamic ROI calculation instead of fixed 1%, for example. ROI depends on PoS difficulty just like PoW reward depends on PoW difficulty.

[mullick]

In PPC there are proof of work blocks and stake blocks. You have to let coins sit at least 30 days without moving to start to become eligible to find a stake block. They increase in their likelihood of finding a stake block until they have sat for 90 days at which point their chances max out and do not increase further. If a stake block is found it is for about a 1% annual amount. So say you had 100 coins sit for 60 days and it finds a stake block you'd get 100*.01*60/365=0.164 coins stake reward and it will freeze your coins for about 5 days as it matures.

The proof of work blocks are the more standard kind of blocks mined by hashing. In PPC the block reward is 1/16th as much every time the network difficulty doubles so if a large amount of people are mining then these blocks can have a very low reward. I don't know how Novacoin differs from this model except that it uses scrypt instead of SHA-256 for the proof of work algorithm.

Wow I posted this hours ago and forgot about it. I just spent my last LTC But  I Mine 1+ a day So  I promise I will send It tomorrow.

On another note thank you very much for that explanation. It helps very much. Again I promise I will send it tomorrow

1 LTC sent. Thank for the help 

[ictin]

In PPC there are proof of work blocks and stake blocks. You have to let coins sit at least 30 days without moving to start to become eligible to find a stake block. They increase in their likelihood of finding a stake block until they have sat for 90 days at which point their chances max out and do not increase further. If a stake block is found it is for about a 1% annual amount. So say you had 100 coins sit for 60 days and it finds a stake block you'd get 100*.01*60/365=0.164 coins stake reward and it will freeze your coins for about 5 days as it matures.

The proof of work blocks are the more standard kind of blocks mined by hashing. In PPC the block reward is 1/16th as much every time the network difficulty doubles so if a large amount of people are mining then these blocks can have a very low reward. I don't know how Novacoin differs from this model except that it uses scrypt instead of SHA-256 for the proof of work algorithm.

So there's a mechanism built into PPC to encourage people not to spend their coins?

Something tells me the developer isn't much of an economist.

Correct me if i'am wrong, but most of the crypto coins, including bitcoin, are build to encourage people not to spend them. And this is because is a upper limit for the maximum number of coins, and so in theory the value will increase in time and people will be tempted to save their coins and not spend them. PPC supply is infinite, but it has this POS.

[calian]

1 LTC sent. Thank for the help 

LTC received. +1

[mullick]

Thanks for the explanation balthazar. Im guessing that's why the bitgem roi is so high? Because of the low hashrate?

[Balthazar]

Thanks for the explanation balthazar. Im guessing that's why the bitgem roi is so high? Because of the low hashrate?

There is no connection between PoW hashrate and PoS difficulty. PoS difficulty depends on active total stake weight only.

[mullick]

Thanks for the explanation balthazar. Im guessing that's why the bitgem roi is so high? Because of the low hashrate?

There is no connection between PoW hashrate and PoS difficulty. PoS difficulty depends on active total stake weight only.

Thank you


This was an older post so I  understand that now. My new question is.....

The bitgem block reward went from 3 to .36 suddenly. Does this mean the reward adjustment happens at a specific block?

Say the reward halves every 16x the pow difficulty.  That would mean the bitgem difficulty was at 160x starting difficulty when the reward changed? I see mineral made a commit for the difficulty which changed something but I dont fully understand that. Did he just change at which block the reward adjusted?


https://github.com/bitgem/bitgem/commit/38da3efd377e3383954f36ddb2b676080f69f88c

Thanks for the help

[Balthazar]

It seems that bitgem reward adjustment was disabled by developer, until this specific block. It's a controversial decision.