If fees are destroyed, what do the (PoW) miners get?

In Bitcoin way of doing, miners are rewarded for securing the network and get the fee = new coins.
In Peercoin, miners mine new coins but the white paper says fees are destroyed to alleviate inflation from PoS.
What do they get in return?

Miners are rewarded with a block reward, similar to Bitcoin. The primary difference is that with Peercoin, difficulty is recalculated after every block, and the reward fluctuates with the difficulty (versus Bitcoin’s static reward until the next difficulty-based “halving”).

Fees are destroyed, so miners don’t receive both the block reward and the fees in the block.

Great explanation! txs

One other difference to Bitcoin s that mining PPC (PoW process) doesn’t contribute to the security model at all. Mining only creates new Peercoins (coinbase reward).

The security of the blockchain is ensured by the minting (PoS process). Minters receive a coinstake reward of roughly 1% per year of the used Peercoins.

The main incentive is for sure not the 1% reward, but securing the block chain and hence the stored wealth in the block chain. The more Peercoins you have, the more you have to lose - so mint if you have Peercoins! :wink:

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