Do Any Altcoins implement Fixed-Deposit Interest Payments in the Blockchain yet?

[FreeTrade]

I was reading an interesting article by Dan Larimer of BitShares . . .

http://bytemaster.github.io/article/2016/01/04/The-Benefits-of-Proof-of-Work/

It covers a number of issues, but the most interesting part of it is the benefits of allowing for interest payments based on tying up funds for a set period of time.

So a user might receive a 5% interest payment on his funds if he agrees not to move them for a period of 1 year.

I'm wondering if there is an implementation of this in any altcoin yet?

[SockPuppetAccount]

Set minimum stake age for 1 year.  Set annual interest rate at 5%.

Done.

[FreeTrade]

Set minimum stake age for 1 year.  Set annual interest rate at 5%.

Done.

Thanks, but I'm a bit thick. Could you explain a bit more plz.

[SockPuppetAccount]

Set minimum stake age for 1 year.  Set annual interest rate at 5%.

Done.

Thanks, but I'm a bit thick. Could you explain a bit more plz.

Well, all POS coins have a minimum stake age, meaning they must not be moved for a certain period of time before they are eligible to receive stake.  They also are set with a specific interest rate, so as to determine what the reward will be when the coins become eligible to receive said stake.  I'm saying that all a POS coin would need to do to achieve what you have outlined is set the minimum stake age for 1 year and set the annual interest rate at 5%.  I'm pointing out that achieving this would not be any sort of great achievement, it would require nothing more than slightly tweaking code that has long existed.

There are a few things to take into consideration however.  This wouldn't work for pure POW coins, or pure POS coins, for reasons I hope are blindingly obvious to even the thick among us.   

Also, it doesn't tie up funds to where the holder of the coins cannot go back on agreeing to hold for 1 year.  Even if they plan to hold for 1 year straight, they could change their mind at any time.

If I were to launch a new coin today implementing something along the lines of which you speak, I would make it a mixed POW/POS coin and try to come up with a method of irreversibly locking down coins for a given amount of time once a holder has agreed to it.

[Snail2]

Set minimum stake age for 1 year.  Set annual interest rate at 5%.

Done.

Thanks, but I'm a bit thick. Could you explain a bit more plz.

Yes he's right, every POS coins are paying "Fixed-Deposit Interest Payments". Annual interest rate and maturity time (minimum stake age) are depends on the "configuration" of the given POS coin.

[FreeTrade]

Well, all POS coins have a minimum stake age, meaning they must not be moved for a certain period of time before they are eligible to receive stake.  They also are set with a specific interest rate, so as to determine what the reward will be when the coins become eligible to receive said stake.  I'm saying that all a POS coin would need to do to achieve what you have outlined is set the minimum stake age for 1 year and set the annual interest rate at 5%.  I'm pointing out that achieving this would not be any sort of great achievement, it would require nothing more than slightly tweaking code that has long existed.

There are a few things to take into consideration however.  This wouldn't work for pure POW coins, or pure POS coins, for reasons I hope are blindingly obvious to even the thick among us.   

Also, it doesn't tie up funds to where the holder of the coins cannot go back on agreeing to hold for 1 year.  Even if they plan to hold for 1 year straight, they could change their mind at any time.

If I were to launch a new coin today implementing something along the lines of which you speak, I would make it a mixed POW/POS coin and try to come up with a method of irreversibly locking down coins for a given amount of time once a holder has agreed to it.

Thanks for the explanation. Much appreciated.

I'm thinking of a PoW coin, with merged mining, and a selection of (tied-up) fixed deposit savings/periods. That last bit would take a bit of code, but I have form with this sort of thing

I'd like to avoid the PoS complication but interested to know why you'd recommend it for such a coin?

[FreeTrade]

Yes he's right, every POS coins are paying "Fixed-Deposit Interest Payments". Annual interest rate and maturity time (minimum stake age) are depends on the "configuration" of the given POS coin.

Understood. POS pay interest, but don't reduce liquidity in the way a fixed deposit interest payment does. This reduction of liquidity is key to the concept.

[SockPuppetAccount]

I'm thinking of a PoW coin, with merged mining, and a selection of (tied-up) fixed deposit savings/periods. That last bit would take a bit of code, but I have form with this sort of thing

If your plan is to make the "fixed deposit savings/periods" irreversible once the user has agreed to the terms, I am envisioning something like a modified multi-sig transaction where the second private key will be automatically released (and provably hidden from the coin holder) after a certain period of time or at a certain block.

Also, if you plan on having a tiered interest rate that depends on the time frame you agree to lock up your coins for, take a look at Ratecoin (XRA).  It includes custom coding that increases your interest rate the longer you hold your coins.

I'd like to avoid the PoS complication but interested to know why you'd recommend it for such a coin?

I don't see PoS as a complication.  I see it as the only way to achieve what it is you want without reinventing the wheel.

[FreeTrade]

If your plan is to make the "fixed deposit savings/periods" irreversible once the user has agreed to the terms, I am envisioning something like a modified multi-sig transaction where the second private key will be automatically released (and provably hidden from the coin holder) after a certain period of time or at a certain block.

Yes, irreversibility is key, but I'm thinking of different method of implementation - but I don't want to get bogged down in a technical discussion yet. Still assessing the current marketplace.

[shanem]

I don't find it attractive as 1 year in crypto is a very long time. Very often, an altcoin may be dead before you can stake for 1 year.

[HeroCat]

5% per year is not too much. You can get more than this profit in altcoin mining 

[FreeTrade]

5% per year is not too much. You can get more than this profit in altcoin mining 

I agree with you . . . I think we'd need north of 100% interest for a yearly fixed deposit in an early stage coin, maybe with reducing rates as the coin matured.

What range of interest rates would start to make it attractive to tie up funds for a month, six months, a year? (In a brand new coin)

[FreeTrade]

I don't find it attractive as 1 year in crypto is a very long time. Very often, an altcoin may be dead before you can stake for 1 year.

Agree - so reward (high) would have to be commensurate with risk (high). I guess there is some price (interest rate) that would make it an attractive investment.

[FreeTrade]

Still looking for any coins that might be similar . . .

[FreeTrade]

The ANN

https://bitcointalk.org/index.php?topic=1317918

[smooth]

DigitalNote XDN

    * Deposit interest rate: 0.4 to 1.094% annual
     The only cryptocurrency with blockchain deposits

[FreeTrade]

DigitalNote XDN

    * Deposit interest rate: 0.4 to 1.094% annual
     The only cryptocurrency with blockchain deposits

Ahhh! Thank you!