Bitcoin Forum
April 06, 2020, 10:20:59 PM *
News: Latest Bitcoin Core release: 0.19.1 [Torrent]
 
   Home   Help Search Login Register More  
Pages: [1]
  Print  
Author Topic: POS WITH FIXED REWARD VS POS WITH PERCENTAGE REWARD ?  (Read 96 times)
This is a self-moderated topic. If you do not want to be moderated by the person who started this topic, create a new topic.
mosprognoz
Sr. Member
****
Offline Offline

Activity: 798
Merit: 266



View Profile
November 05, 2019, 11:22:19 AM
 #1

POS based on percentage reward is some kind of outdated. POS with fixed rewards are not used by many altcoins. So which on is better ?

Example 1: I have 1000 coins and percentage based reward is giving me 7.5% yearly (Approximately) More coins means more reward.

Example 2 : I have 1000 coins and fixed reward is giving me 5 coins block reward. More coins = More blocks.

Actually I do not see a big difference since more coins = more rewards.

What do you think ?
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1586211659
Hero Member
*
Offline Offline

Posts: 1586211659

View Profile Personal Message (Offline)

Ignore
1586211659
Reply with quote  #2

1586211659
Report to moderator
Javi_Anibarro
Sr. Member
****
Offline Offline

Activity: 1064
Merit: 280


View Profile
November 05, 2019, 11:49:08 AM
 #2

There is a big difference between both of them actually, the percentage based reward is giving more rewards compared to fix based reward because of the block.
here is why:

FIX based reward
Block reward: 5 coins
Block time: 20 second

The maximum coin will be generated daily is 21.600 coins no matter how many coins are in circulation right now because:
1 day = 86.400 seconds,
86.400 s/ 20 s = 4.320*5 coins = 21.600 coins

On the other hand, with the percentage based reward.
The total coin that will be generated is based on how many coins in circulation which means the more it is the higher the coin will be generated.
mosprognoz
Sr. Member
****
Offline Offline

Activity: 798
Merit: 266



View Profile
November 05, 2019, 11:58:01 AM
 #3

There is a big difference between both of them actually, the percentage based reward is giving more rewards compared to fix based reward because of the block.
here is why:

FIX based reward
Block reward: 5 coins
Block time: 20 second

The maximum coin will be generated daily is 21.600 coins no matter how many coins are in circulation right now because:
1 day = 86.400 seconds,
86.400 s/ 20 s = 4.320*5 coins = 21.600 coins

On the other hand, with the percentage based reward.
The total coin that will be generated is based on how many coins in circulation which means the more it is the higher the coin will be generated.

So which is more fare ? And for the new altcoin it is better to have a fixed reward since from beginning there will be small amount in circulation ?
Javi_Anibarro
Sr. Member
****
Offline Offline

Activity: 1064
Merit: 280


View Profile
November 05, 2019, 12:31:24 PM
Merited by mosprognoz (1)
 #4

In my opinion, it is better for a new altcoin to adopt a fixed rate reward because of fast distribution. At the initial phase, a fixed rate reward will generate more coins compared to the percentage one because of the total block mined daily. It helps the project to mine more coin and distribute it to many people, what a new project needs in the beginning is a community. Wide and fair distribution is needed to protect the network and help the project.
If the coin in circulation is too little at the initial phase, someone will try to manipulate the price and it might harm the future of the altcoin.

mosprognoz
Sr. Member
****
Offline Offline

Activity: 798
Merit: 266



View Profile
November 05, 2019, 12:36:53 PM
 #5

In my opinion, it is better for a new altcoin to adopt a fixed rate reward because of fast distribution. At the initial phase, a fixed rate reward will generate more coins compared to the percentage one because of the total block mined daily. It helps the project to mine more coin and distribute it to many people, what a new project needs in the beginning is a community. Wide and fair distribution is needed to protect the network and help the project.
If the coin in circulation is too little at the initial phase, someone will try to manipulate the price and it might harm the future of the altcoin.


Yes. Wide and fair distribution is the most important thing. Thank you for a useful information.
cudora
Copper Member
Jr. Member
*
Offline Offline

Activity: 322
Merit: 3

Cryptoknowmics - World's First Decentralized Media


View Profile
November 05, 2019, 08:08:40 PM
 #6

For sure it is better to have POS coins with percentage rewards, because instead of earning 70 coins per year, you will get thousands more coins, even for a day. I do not believe that somebody will chose fix rewards to be fair  Grin

disconnectme
Hero Member
*****
Offline Offline

Activity: 1302
Merit: 505



View Profile
November 05, 2019, 08:46:09 PM
 #7

I think the percentage reward is better, if it is fixed reward and just a few whales are the ones staking the will collect all the rewards but if it is a percentage reward, this will not be possible since you know what you get before and after the staking. Even for fixed reward we have seen developers using their allocated tokens to skew the reward to their own benefit

inure 
 

█████
██
██
██
██
██
██
██
██
██
██
██
█████
█████
██
██
██
██
██
██
██
██
██
██
██
█████

███  ANN
BOUNTIES
▄████████████████████████▄
████████████████████████████
████████████████████████████
█████████████████▀▀  ███████
█████████████▀▀      ███████
█████████▀▀   ▄▄     ███████
█████▀▀    ▄█▀▀     ████████
█████████ █▀        ████████
█████████ █ ▄███▄   ████████
██████████████████▄▄████████
████████████████████████████
████████████████████████████
▀████████████████████████▀
▄████████████████████████▄
████████████████████████████
████████████████████████████
████████████████▀▀▀█████████
██████ ▀██████▀      ▄██████
██████▄   ▀▀▀        ███████
██████▄             ▄███████
███████▄           ▄████████
██████▀▀▀        ▄██████████
███████▄▄     ▄▄████████████
████████████████████████████
████████████████████████████
▀████████████████████████▀
▄████████████████████████▄
████████████████████████████
████████████████████████████
█████████████▀    ▐█████████
████████████    ▄▄██████████
███████████▀    ▀▀██████████
██████████▌       ██████████
████████████    ████████████
████████████    ████████████
████████████    ████████████
████████████▄  ▄████████████
████████████████████████████
▀████████████████████████▀
avikz
Legendary
*
Offline Offline

Activity: 1582
Merit: 1271


FortuneJack.com


View Profile
November 06, 2019, 04:03:27 AM
 #8

If you ask which one is better - percentage based reward for an individual! The more you stake, the more you earn! But that is not fair everytime because here big whales get away with majority of the rewards and also people tend to HODL which eventually reduces the circulation of the coin in the market.

If you ask which one is fairer - block based reward! Here everyone get an equal chance to participate in the network and earn according to their mining ability. Not just whales but normal people can also earn a significant amount of money without staking it! Which eventually increases the circulation to meet the demand.

Hope this makes sense!

Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!