MAX_STAKE_BLOCK_REWARD inflation control for Proof of Stake


One of the common criticisms of the original Proof of Stake coin Peercoin is of the setting Maximum Coin Age. With Peercoin the Minimum Coin Age is 30 days and the Maximum Coin Age is 90 days. This means that coins must be idle for a minimum of 30 days to be eligible for staking. Proof of Stake is based around stake weight which is calculated based on the amount of coins you have and the cumulative coin age.

Enforcing a Maximum Coin Age however means that it may not be possible for stakers with smaller amounts of coins to ever generate a proof of stake block as they may never gather enough stake weight within the Maximum Coin Age period to be eligible to stake a block. Essentially those who have a large amount of coins stake the most amount of coins, for example this address which has over 550k PPC and this address which has over 220k PPC. To put this into perspective for a smaller staker, someone who is consistently staking 4000 PPC will stake approximately 5 blocks per month. Someone who is staking 550 PPC will stake approximately 1 block a month.

MAX_STAKE_BLOCK_REWARD will be a new setting which defines the Maximum Reward that a Proof of Stake block can yield.

Any thoughts? Could this be implemented for PPC too?