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Aren't all PoS systems a "rich get richer" system?
by higherpurpose 12y ago
Aren't all PoS systems a "rich get richer" system?
- DennisP 12y ago"Rich get richer" would be if people with larger shares of the total money supply tended to increase their share. But with Peercoin, for example, everybody earns annual interest of 1% of their holdings, paid in new coin. Let's say instead we have DennisCoin which pays a whopping 100% and is worth $1 per coin. If you start with 10 coins and I start with 90 coins, then after a year you'll have 20 coins and I'll have 180. I still have nine times as much as you. Since the number of coins has doubled, the currency value drops in half. So in dollar terms, you still have $10 and I still have $90.