I
love discussions about new algorithms, no problem
And I understand the intention of the approach.
The problem with the PoT approach is that I expect that the "poorest group" of the
regular users (those that use it as a currency and not primarily to get rewards) of your currency will operate at a loss. They will transact, but their transaction count won't be enough to ensure them a really significant profit from block rewards - even if they joined a "PoT pool". So their transaction fees can't really be seen as an "investment".
The question is, then, if their loss is bigger or smaller than in PoS, where the loss can be calculated with the formula "transaction fees + value depreciation due to inflation". I believe, that as the expected transaction fees are conceptually higher, the loss will also be higher as in coin-age PoS algorithms where "the rich" have less advantages with respect to "the poor" than in fixed-reward/transaction-fee-reward (e.g. NXT) based PoS systems. So the rich-get-richer effect would be less drastic than in NXT/NEM or in DPoS-based systems, but worse than in Peercoin.
But as I said in the first post in this thread, I think for a small currency a transaction-based block reward is positive because it rewards cryptocurrency businesses to operate with it and offer services, and so strengthens the ecosystem. For me, however, it would be better to change to a normal PoS algorithm once the coin grew up, because once blocks are full, the "additional blockchain bloat effect" of PoT makes the coin more expensive to operate. A PoT/PoS system where PoT (or PoI) reward is higher in low-transaction periods, while in high transaction periods PoS rewards become dominant, would be ideal from my point of view.
We recently found if we use accumulated transaction fee as weight vs transaction number. This will reduce the incentive for speculators to issue massive transaction numbers, Sybil attack. If someone still wants to spam network by spending transaction fee, it will be economically punishment because of fees will be distribute to all club members.
Our new whitepaper will cover this part to keep meaningless transaction attack in bay.
-iMorpheus
