Proof of Interest

Hello Everyone, I am just noting a concept I thought about, and thought I would ask for input in the idea. It may have multiple flaws or it may already exist, or be completely stupid and ridiculous, my bad if that's the case, I just want to share and discuss the idea.

Proof of interest is essentially a method of coin generation that utilises POS, POB, and POW in a way that best secures the network and enables individual mining.

The main concept is essentially that users can burn coins, and upon finding a block, they get a function of those burned coins back.

After a initial proof of work period (after block x where y coins have been generated), the block reward system changes to proof of interest. The block reward is now not dependant on the coins held like proof of stake, and is also not a set reward for finding a block like proof of work. Instead, the block reward is a function of the coins a user has burned. If a user has burned x coins, the block reward may be expressed as ((y/100)x-(2x/z))+x (please correct me if this equation is bad). where y is the % of inflation, z is the total number of unclaimed coins and x is the number of coins the user burned.,for example,if interest is 1%, the user burns 50 coins, and the total number of coins burned that are unclaimed is 1000, then we have the equation ((1/100)50-(100*(100/1000))+50=50.4 (0.8% reward, 20% less than 1% because the user has 10% of the hashpower, more about that later).

This essentially means that the cost of mining, and therefore securing the blockchain is now tied to multiple objects. Firstly, miner elasticity is lowered, new miners must have coins to participate, this means the coins is multipool proof! Secondly, demand spikes up due to miners wanting to hold more coins, meaning more scarcity as well as a price increase is created, thirdly, we have a risk involved with burning, as users may not find a block, meaning that mining has a bigger cost associated with it, discouraging pools and the like, and encouraging those who have faith in the coin to take part.

Diminishing returns is a must, this is seen in the given equation which states that the % increase in the block reward is diminished by the number of unclaimed coins a user has comparative of others. This means if a user get close to 50%, the returns diminish to 0%, meaning that users will be more divided. As long as rewards don't get to less half when double the coins are burned, users will not get more profitability burning 2 batches of coins from different addresses, as they would now have to find 2 blocks (half the chance).

The function can be adjusted to suit desired needs, the main concept is that we can now set a steady rate of inflation, even going towards forced deflation at some point, were burning coins and mining them back is a better economic thing to do.

So, in summary, these are the reasons this should be implemented in a coin:

Multipool resistant, they'd have to hold coins to make it profitable to mine

Discourages pools, as payouts would be complicated, and the miner will be just as profitable soloing.

Encourages dedication to the coin

Encourages temporary tradeoffs, and therefore value increase

A short user perspective summary:

Let's get user a, user a obtains some interestcoins in their POW stage, and the coin enter the proof of interest stage. Now, using proof of stake, they could hold the coins themselves, essentially giving an opportunity cost to spending the coins, which encourages hoarding and therefore makes the POS concept very limited in terms of promoting a currency. Instead, person a decides whether they want to keep the coin for spending, which would mean they receive no interest (increase in their number of coins), or they could send their coins to the official burn address, when they send their coins to this address, the will be gone forever (burn addresses can be confirmed to actually make the coins "dead" if they have certain properties), now when person a utilises their GPU to mine some coins, they do not receive a set reward when they find their block, but instead they receive the coins they burned plus an additional 0.5%.

Twice the percentage of the unclaimed burned coins they have in the POB address get subtracted from these 0.5% (it could be any percentage, depending on the inflation that is wanted). Person a is encouraged to keep burning the coin, limiting supply, when they cash out along with others, the supply of the coin will not increase as much, compensating for the price decrease, driving it up again. This means person a is better of holding the coins and solo mining.