This RFC proposes to discontinue Proof-of-Work, allowing Peercoin to become an efficient pure Proof-of-Stake coin.
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Peercoin was launched with Proof-of-Work serving as the primary mechanism for achieving a fair initial distribution of coins. That objective has largely been fulfilled. Continuing to issue new coins through Proof-of-Work may no longer broaden ownership in a meaningful way.
My experience with Peermining illustrates this point. Although it is a relatively small mining pool, many of the miners I recruited sold most of their mined Peercoin immediately to recover electricity, hardware, and operating costs. As a result, mining did little to create long-term stakeholders.
Today, Peercoin is distributed across more than 200,000 addresses. While address count is not a perfect measure of ownership, it clearly shows that the network has moved well beyond its initial distribution phase. The original rationale for maintaining Proof-of-Work as a distribution mechanism is therefore less compelling than it was at launch.
If preserving Peercoin’s identity as a hybrid Proof-of-Work/Proof-of-Stake blockchain remains a priority for the community, one possible compromise would be to periodically reduce Proof-of-Work rewards through scheduled halvings. However, this would introduce additional complexity without materially improving network security.
The question isn’t whether the hybrid approach was essential to Peercoin’s success—it clearly was. The question is what consensus model best positions Peercoin for long-term success from this point forward.
Matt’s proposal deserves careful consideration and thoughtful discussion. Whether the community ultimately supports or rejects it, I believe the conversation should be guided by Peercoin’s current economic realities, security assumptions, and future goals rather than by its historical design alone.
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