Peercoin announced some new changes to its PoS award system and we are about to find out more about them in the following peercoin news.
The innovative crypto project came up with the proof of stake blockchain security system, made a few changes to the model. The project unveiled the plans recently via a blog post where we can see the changes that aim to tackle inflation issues within the ecosystem itself. According to the blog post, the developers of Peercoin came up with the idea to ease inflation without affecting the concept of minting new coins.
Right now, the Peercoin system uses a reward model that promised 1 percent minting inflation each year. The system allowed minters to claim their 1 percent for participating in the creation of a block. This model, however, had many disadvantages. The minters on the Peercoin network do not claim this reward and also the minting results in less than 0.5 percent each year. The developers decided to change this limitation and to fulfill the 1 percent per year promise. According to the blog post, they found a new way to implement this change without having to undermine the concept. This involved creating a new set of rules that aim to create a balance between small and big minters so every participant will get a fair share of the reward.
Peercoin noted that the developers came up with the idea comprised of two parts: dynamic and static. The static portion is a simple fraction of the coin supply which is divided among the blocks that are minted each year. The dynamic part will use the coinage calculator but the system will augment it with a multiplier based on the coinage that was claimed in the previous year. This portion increases when the participation in the chain is low.
As Peercoin announced, this new reward model will increase participation in the chain. This is because the participants will result in a bigger reward if it gets increased. The project also hopes that this move will help keep the promise of 1 percent inflation per year. To fight against bad actors that want to manipulate the system, the developers put up several mechanisms to help them. Peercoin stated:
“All in all, we expect this protocol change to significantly grow the number of minters participating continuously in block creation, thereby sustaining the Proof of Stake difficulty, and ultimately the security of the chain itself. In addition, guaranteeing the 1% inflation target will stimulate the Peercoin economy to grow and maintain good fundamentals throughout the ages.”
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