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.