A few questions have come in requesting clarification of how PoSP works so we wanted to provide a summary in case others are wondering the same thing:
Proof of Stake Participation (PoSP) is designed to maximize security, transaction processing and community interest by boosting the rewards (interest payouts) to CBX owners for staking their CBX.
Basically the more CBX you have and the more often you stake, the more CBX you will earn. However, unlike other staking coins that allow for higher interest rates at the expense of allowing high inflation,
CBX will offer higher interest rates but will keep its low 2% yearly inflationary rate.PoSP will insure that the full 2% annual inflation of the overall supply of CBX (little less than 1 million CBX) is paid out to active stakers by distributing the unclaimed PoS rewards from non-staked CBX to the CBX owners that are staking - thereby allowing stakers a potentially far greater return than 2%.
One PoSP block will on average occur every 65 seconds. The block size will grow very slowly as it is based off of the overall supply of CBX in existence but it will basically stay at a static size – about 0.04 CBX per block (every 65 seconds) as PoSP starts.
After 9am EST December 31st when PoSP takes over and your CBX have sat unmoved in your Vault for 1 hour, they will immediately qualify to compete for the block rewards being awarded every 65 seconds. The more CBX you have in your Vault, the more likely you are to earn these blocks. Just unlock your Vault and let PoSP run.
Below is a chart that estimates the interest rate that will be earned via PoSP relative to how many of the overall CBX in existence are being staked at any particular time.
• All CBX (~ 1million) in existence being staked = 2% annual interest earnings
• ½ of all CBX (~ 500k) in existence being staked = 4% annual interest earnings
• ¼ of all CBX (~ 250k) in existence being staked = 8% annual interest earnings
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