It would be perfect idea to cancel all changes.
Please explain your point Coinerer WHY is it a perfect idea to cancel all changes.
After Bitcoin will add interest rate of 100% yearly, I will agree with Netcoin Foundation.
First Bitcoin, then Netcoin with PoS of 100%
If you read better the interest rate of 100% is only for the first year the second year you only get 45%
Besides how many people have more than 10 million NET?
I looked it up for you and there are 3 adresses with more then 10 million coins of which the biggest is inactive for 5 months already.
The other 2 are adresses from exchanges and they don,t stake they can,t actually
My opinion is that someone is jealous and is a little bit sick that bitcoin doesn,t have such innovatieve things
i am worry about the number of NETCOIN will increace too much and i am rather worry about the exchange, why they can't get POS? i can tell you they can get POS. they can do anything to make money, even open the wallet for POS coins.
i don''t like this change to POS. the number will be increaced too much, sorry for your hard work, dev team.
maybe we need something new to attract people. POS is out, we need some innovations to improve NETCOIN. does anybody have good ideas?
@vsmamm a coin's "life" is always one where you are trying to attract new people while making sure you don't sacrifice the security, stability, and foundation of the coin itself. We don't think POS is not "out" persay...but rather this: what POS was attempting to do in theory was great (secure the network through wallet's competing to secure the network AND providing a reward), but it left open some major flaws and issues, namely: nothing in the reward dealt with securing the networking while holding the coins.
That's why we didn't "just" implement POS. In fact, what was implemented was something never done before: A way to secure POS, ensure the network is safe, AND provide a fair incentive reward that is the most rewarding to date.
Why change to POS in the first place?
We liked the idea of substituting the 'sacrifice of electrical power and energy' with 'the sacrifice of accumulated coin age' to sign blocks and earn rewards. For one thing, it's more eco-friendly. For another, it provided a way to give back to NETCOIN users.
But the one argument against POS as a concept that really bothered us was this:
- Nothing in that reward talks about securing the network while you hold the coins.
What does that mean?
So, in theory, one could:
- obtain a large number of coins
- Put them in a paper wallet
- Forget about Netcoin for 5 years
- Import the private key into my wallet
- Start staking
- Receive 5 years worth of POS reward
For what? For helping to securing the network for a few hours in all that time. This, to us, seemed to be an oversight in the overall POS concept. Why should anyone bother trying to compete and leave their wallet running if you get the 5 years reward anyway?
Thus, the need to make some fundamental changes to the POS system, and that's what we did with PIR + OWI: NETCOIN being a POW + POS hybrid:
- Regardless of what happens with POS block staking, there is a parallel POW mining mechanism with NETCOIN that is also constantly competing with the POS mechanism to sign the current transactions. Cool. Added Security and safety. That's always good.NETCOIN adding PIR + OWI (Personal interest rate + Open Wallet Incentive)
Open Wallet Incentive (OWI) is a new algorithm designed by NETCOIN core team to both replace Proof-of-Work (PoW) and Proof-of-Stake-Velocity (PoSV) as the mechanism to verify transactions and create blocks and provide incentive to NETCOIN users to participate in staking. OWI continues to reward users for their ownership and activity of NETCOIN. Simply put, the more NETCOIN you have, and the more you keep in your wallet (and keep your wallet open and running), not only are you more likely to find a stake block and receive block rewards, but the more interest you earn based on the amount of coins in your wallet. However, what sets OWI apart is the ongoing reward (or interest rate) that’s applied. Rather than having a static reward that stops, ours continues to reward (that declines with time).
HOW IT WORKS:
- Users should stake once each month to earn highest possible rewards
This incentivises running full nodes to increase POS security
- The Coin Age gradually slows after 1 month with an aging half life of 90 days.Personal Interest Rate (PIR)
is a new algorithm designed by NETCOIN to replace the static Annual Percentage Rates (APR). APR is the 'Annual' or yearly target interest rate. Other coins set a static, fixed APR (much like a savings account). However, a rate that increased for larger holders of the currency would encourage people to:
1) Want to obtain more NETCOIN (as they would be getting a higher “interest rate”) and
2) Promote smart consumerism (spending the currency could reduce one’s interest rate, thus providing a means for individuals to spend wisely).
Simply put: The more NET you get, the better the rewards.
HOW IT WORKS:
The number of NET you stake (or have in your open wallet) determines the Annual interest rate that is applied to the transaction for that reward. When a Proof of Stake block is awarded, the annual interest rate is converted to a daily rate, and applied based on the age of the staked coins in days. Stake reward increases in line with the value of the coins staked on a sliding scale.
Users who keep their wallets open more often (or stake regularly) to secure the network earn the quoted APR, while users who keep their wallet closed for months at a time and do not help to secure the network with POS staking will earn less than the quoted APR. REASON FOR PIR + OWI
Interest rate is a measure of risk and reward. In finance an Interest Rate is often called a 'Risk Rate'. The large holders are exposed to greater risk with the rises and falls of the price of crypto currency. Presently, this is much more than normal fiat currency.
Therefore, an individual with more NETCOIN will get a higher reward to reflect (and honor) the higher risk they are taking. Furthermore, every time the interest rate rises a little bit with every extra NETCOIN obtained creates a desire to obtain NET. This is a good thing for keeping the market active and encouraging users to 'stick' with NETCOIN for the long haul, and to discourage the use of the coin as a “pump-and-dump” coin. To prevent an uncontrollable increase in interest to further, we designed into the protocol from the start interest rates that change after 1 year and 2 years to close the gap between high and low holders. This reflects that fact that by that time the risks will be lower and more balanced.
As for the number of NETCOIN increasing, what do you mean by this?
And For An exchange getting POS and trying to "control" the coin, What we've done above is one step to prevent this from happening. We have another feature in the works that when released, will completely level the playing field for Staking, to prevent big whales and malicious individuals from trying to manipulate/steal coins.