I am not a technical person, so I have some questions about POS.
Since all the POS coins have an yearly interest rate, I wonder how that interest is calculated.
Its not just once a year 6% , I presume.
So lets say for example I let 1,000,000 FAC stake in my wallet for 1 year. With 6% interest/year and a min coinage 30 day and max 90 days.
Does that mean the interest is calculated every 30 days at 0.5% (6% / 12 month)?
Because that would result in a sligtly higher interest rate than 6%/year.
No, it's 6% per year. If you want to benefit from compound interest, you'd have to open your wallet at every 21 days (minimum coinage is 21 days not 30) and wait for the wallet to make it's magic, once you successfully got your stake, the cycle starts again and you will earn interest on those newly coins as well (compound)
the 6% per year should be turned into days (acutally I'm sure it's counted in terms of blocks but for the sake of this explanation I'll say days)
so 6% / 365 = 0.0164%/day
so at 21 days (assuming it takes 21 days to get your stake, could be longer) you'd
get 21 * 0.0164% ~ 0.345% interest on those coins.
if it takes longer, just change the 21 days for the time it takes, so you don't really lose for waiting longer.
1,000,000 * 1.005^12=1061677.8 FAC
vs
1,000,000*1.06=1,060,000 FAC
Thats just for the first year. It would ad up even more over the years.
With an higher interest rate, there is a coin that offers 100% for the first year, that would ad up pretty quickly.
That coin has a min coin age of 2 weeks and no max. So 100% / 52 weeks / 2 = 3.846% every 2 weeks.
1,000,000*1.03846^26=2667682.209
vs
1,000,000*2=2,000,000
True but as soon as you move coins, you destroy your coin age, so those coins will have to restart the 21 days cycles, some people move them around to trade or buy stuff, other keep them for staking, so it adds up, but not so fast
And my second question:
Whats the difference between a 30 days old coin and a 90 days old coin?
Please excuse my probably bad english
the max 90 days is a maximum for the weight your coins will get
weight is used to prioritize witch coin get the PoS stake on the network.
If I have 1000 FAC (in one block) @ 30 days old
and You have 10000 FAC (in one block) @ 30 days old
My weight is 1000 * 30 = 30000
you weight is 10000 * 30 = 300000
This weight is capped at 90 days
so 1000 FAC @ 90 days = 90000 weight
and 1000 FAC @ 100 days = 90000 weight
And finally, in my previous exemple at 30 days of age, you will have better chance of getting your PoS than me since your weight will be bigger.
Check this guide out, it's on HoboNickels but the principles are pretty much the same
http://wiki.hobonickels.info/index.php?title=Proof_of_Stake
