I don't like idea 1, it give no incentive to hold the coin.
The big issue is the exponential runaway of PoS at 100% interest. Over a 5 year period the amount of coin supply is going to increase by a factor of more than 150. I don't know how I can make that important point any clearer.
You can think of fixed reward PoS as being something like a greener way of mining PoW, without an unfair bias to those who hold large balances. It also limits the increase in coin supply because there are a fixed number of blocks each day.
The main difference is that people with obscenely large balances will no longer receive proportionately large rewards, but conversely, someone with a smaller balance - most likely the large majority of participants! - will receive a larger reward than they would have.
Current system with interest:
1,000,000,000 PEEP at 1 day old = 2,739,726 PEEP reward (the rich get richer)
10,000 PEEP at 1 day old = 27 PEEP reward
Proposed system with fixed rewards:
1,000,000,000 PEEP at 1 day old = 10,000 PEEP reward
10,000 PEEP at 1 day old = 10,000 PEEP reward
This may not be "the" solution, but whatever happens, there is a need to stop the massive exponential explosion of money supply and corresponding decrease in value of each individual coin that the current 100% p/a system will cause.