Not good for PPC in which regard? As far as miners no longer wanting to mine?[/quote]
One problem is waste of resources on orphaned blocks.
Another problem is honest PoW miners walking away, causing lower difficulty, causing higher volume of minted PoW coins.
Another problem is reduced reliability of the block chain. If more blocks are orphaned, more confirmations are required for the same level of confidence.
[i]"eventually there will come a time where more coins are produced with PoS than with PoW"[/i]
That was my point. Somehow you feel it necessary to argue it, and then say something that mimics what I was trying to convey.
[i]Even then, the PoW hashrate will be huge and approximately 1 out of 8 blocks will be PoW blocks.[/i]
It seemed to me like you suggested that PoW mining would become unimportant in the future. That is incorrect; PoW mining will always play a central role in PPC and the PoW hash rate will only go up.
please explain how you've mathematically reached this prediction:
[i]"the PoW hashrate will be huge and approximately 1 out of 8 blocks will be PoW blocks"[/i]
..and finally..
You may see that anybody who can afford to invest 100,000 PPC in stake minting has the power to crush a competing PoW block every other day. This would do some real damage to the PoW game. I don't think it should be ignored based on uncertain notions about the future of Peercoin.
The PoW difficulty is managed such that one out of every 3 to 13 blocks is a PoW block.
There are currently ~ 20 million PPC. Collectively these can produce at most 200,000 PPC per year via PoS minting.
The revenue of PoW minting is determined by difficulty. At current difficulty, PoW minting produces ~ 150 PPC per hour = 1.3 million PPC per year.
So PoW minting revenue must be reduced by a factor 5 to get to the same level as PoS minting. This means difficulty must increase by a factor 5^4 = 625, which means hash rate must increase by a factor 625.
All of this should be common knowledge.
Strategic PoW orphaning could be done as follows: Split your 100,000 PPC into 50 portions of 2000 PPC, and use one portion every two days. After 90 days, 2000 PPC provides coin age of 180,000 PPCday. At the current PoS difficulty level 6.5, this means you can expect to mine a PoS block every 6.5*2^32/180000 = 155096 seconds = 1.8 days.
By orphaning a PoW block every two days, you destroy about 2% of all PoW blocks. Of course you don’t do this to your own PoW blocks, so you gain a 2% advantage in PoW hash rate over your competitors. If you run a medium-big mining operation, this gains 2% of 150 coins per day = 1000 PPC per year. Not a stunning amount of money, but quite worthwhile. By combining PoS and PoW minting, you managed to double your PoS revenue.
I know 100,000 PPC is a big investment, but I guess there are some big miners around who have that kind of money. Of course you can start small: 6000 PPC is enough to destroy a PoW block every 8 days. That is still 0.5% increased PoW revenue.
I also assume that for your theory to work, Sunny King would have to sit idly by and not propose new code changes.
One of the things that worries me about Peercoin is people's blind faith in Sunny King. I'm sure he is a clever guy. He pushed a very interesting idea and managed to make it work. He got a lot of things right, and some other things almost right. But he holds [b]no power[/b] over Peercoin. If there is something wrong with Peercoin (as I claim there is), the best Sunny King can do is propose a new coin (deceptively also called Peercoin). He can then ask everybody in the community to kindly upgrade their software, thereby invisibly converting their old Peercoins0.3 to Peercoins0.4. Until now this has always worked. But some day, when the stakes are really high, a significant fraction of the community may refuse to upgrade. From that point onwards there will be two separate coins, Peercoin0.3 and Peercoin0.4, and it is everybody's guess how those coins will be priced relative to each other.
