Yes, lots of people have not heard of Peercoin. How will they get any from Proof of Work?
How is Proof of Work fair going forward?
Alot new coins have a period of around a week with PoW before they go full PoS. This is not fair since only a few PoW miners get all the coins in a short amount of time. The longer the period of new coins through PoW is, the more fair the creation of the coins.
We are not talking initial distributions. We are not talking other coins.
We are not talking the negative environmental issues of PoW.
We are talking about Peercoin now two years old. The most mature Proof of Stake coin.
This is the third and last time I will ask this question:
How does Proof of Work create fairness for Peercoin going forward?
PoW create fairness by diluting early bag holders through creation of new coins.
By the way: I think that the inflation rate in Peercoin will drop alot when the cold minting feature is released.
The “early bag holders” are PoW miners! Rather than diluting their share PoW increases their share.
It is not the same people that mine today as in 2012. If Bitcoin stopped PoW inflation and went fees only after two years, only Satoshi and a few others would have gotten the chance to mine some coins. Bitcoin stops the inflation in 2140, but I don’t think it has to run for so long to get sufficient fairness.
I do not see how Proof of Work provides fairness of distribution in the future. PoW miners will continue to get more centralized as is happening in PoW mining for Bitcoin/Peercoin currently. As I understand the little guys are getting kicked out for larger economies of scale and other benefits like operating with lower electricity costs. This means that these new peercoins will be going to a smaller and smaller fraction of miners over time.
Miners are a small subset of Peercoin users so the new coins will be going to an ever smaller group. I do not see how this is fair distribution going forward. Moreover, with PoW mining finished Peercoin plays the role it was designed to as a backbone currency. It will have the 1% interest counterbalancing the .01 transaction fee p/kb. The sooner we get there the better. Once the network is secure from cold locked minting creating active and consistent PoS minting I see no reason to continue PoW.
I think PPC becoming pure pos is a great idea.
I think today’s miners are more of the mine-and-sell type who tend to get back their investment ASAP. When newly mined coins are sold, they are distributed to the non-miner types of owners.
Imho, I think this discussion should be revived 3 years from now when ppc is at least 5 years old. For now I like the pos/pow hybrid as it is with an inflation rate between 4.5 and lower. As much as I would love to have a pure pos coin, it is still too soon.
It is and will be the only pos coin that would have had such a long stage of distribution. This as opposed to blackcoin e.g. that only had few months of incubation or instant IPO such as Nxt.
Blackcoin had a week LMAO :))
How does allowing the mining to continue for years help distribute the coins fairly? The newly generated Peercoins will be going to an ever smaller group of people with the centralization of miners. The centralization of miners will only continue in the future. These people will have an ever more % of market share.
You could say well these miners then sell their coins on the open market for fair distribution. Well, I could sell some of the coins I previously bought. Miners are not needed. Mining does not provide security. It was meant to be phased out. Peercoin is mature enough at this stage to end mining. We are phasing out checkpoints soon.
With the current downward price movement of Peercoin lets take into account the role of mining. It causes a downward force on price as the inflation rate is higher and many of these miners sell to cover costs.