Peercoin minting facts
- Minting process can only start after 30 days of coinage.
- Minting coinage is maxed out after 90 days (0 day <-can't mint-> 30 days <-minting probability increasing-> 90 days <-minting probability reached its max-> infinite). Which means that the minting process won't consider more than 90 days of coinage even if your coins have 365 days of coinage for example.
- Minting is predictable and not random (c.f. findstakejs.peercointalk.org) --> For a given transaction, you can calculate the maximum network PoS diff over time for your transaction to be able to mint a PoS block. Whenever this PoS diff is higher than the current network PoS diff your Peercoin client can mint a PoS block.
- PoS blocks can be rejected (orphans) if several people mint a PoS block within a given window (2 hours also called timedrift). Only one (the chain with longest coin age) will be accepted.
- Minting splits the transaction in two if coinage < 90 days (this behavior can be avoided by customizing your Peercoin client: ??unsure if true and if blocks will be accepted??)
- PoS block reward is 1% annual. This 1% is factor of your coinage, and is not maxed out.
- A transaction that just staked has its coins locked for 520 confirmations (3-4 days).
- Merging transactions, spending coins, etc. burns coinage (resets it to 0).
- PoS reward is directly added to your transaction which staked (if this transaction is split in two because coinage < 90 days, the reward is equally distributed to both resulting transactions).
How to determine the amount of currently minting coins?
When you know the POS difficulty, you can calculate the number of coins minting with the formula:
number_of_coins_minting = (POS_difficulty * 2^32) / (avg_dayweight * 600)
avg_dayweight is a value between 0 and 60 calculated as the average stake coinage - 30 over a number of previous blocks.
Stake coin age must be at least 30 days old and is taken into account up to 90 days max since protocol v0.3.
Example of calculated number of minting coins on july 3d 2015 by glv:
For the last 2016 blocks (between 180759 and 172775), I got an average age of 77.81 days (an average dayweight of 47.81). With the difficulty around 15.95, this gives a number of minting coins around 2 388 000 (10.63% of the total money supply).
What difference if I mint every 30 days or only once a year ?
Just use the compound interest formula you can get from Wikipedia here: http://en.wikipedia.org/wiki/Compound_interest
Peercoin has an annual minting interest of about 1% (formula available here)
Suppose you have an initial stake of 1000 PPC available at the beginning of the year.
Here is what you will get at the end of the year:
- if you minting once at the end of the year: 1010 PPC
- if you mint every 30 days (12 times): 1010.045961 PPC
The difference of 0.046 PPC is negligible.
This gives us an annual interest of 1,0000455% instead of 1% on the first year.
There is no real incentive to over-optimize minting.
If I have a bad Internet connection, will I be disadvantaged when minting?
ppcman answered a similar question on peercointalk here.