Author Topic: Minting  (Read 7929 times)

DMDCreeper

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Minting
« on: August 31, 2014, 08:17:48 PM »
Where can I find the most detailed explanation of how minting works?

Thanks.

DMDCreeper

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Re: Minting
« Reply #1 on: September 01, 2014, 01:59:32 PM »
updated 01.june.2015

How is POS working:

there is a easy and a complex answer

easy:
each year ur coins will increase as much as the pos reward percentage say if u regulary (once a month) open ur wallet in minting mode for a few days


complex:

following is true for DMD POS
not all coins use the same
and some (most) coin devs dont full understand what i describe here
and so their code isnt utilizing POS in its full power or values not adapted to fit their coin amount

to test other coins just ask them to explain u how POS works in detail
u will get lot different and most of them are wrong answers (copycoder alarm .....)


pile
coin weight
coin age
burn coin age
min time
max time
split stake
group stake
pos difficulty
pos block time
pos reward


pile = if u check coin control u see u have lot pile of coins
each pile try to POS on his own (only group stake act different)

coin weight=determined by amount of coin in pile and his age used to calculate ur chance to mint coin weight stop to grow once ur coins reach max time is reached (this is to prevent someone gather lot coin weight and be able do some kind of attack(no guide for attack here...) (which wont work anyway at DMD because of hybrid security))

coin age=determined by amount of coin in pile and his age used to calculate ur reward when u mint successful
coin age doesnt stop to grow and so do ur rewards get bigger and bigger until
u mint successful then ur coin age of the involved coin pile is set to zero

burn coin age/coin weight happens also for all coins in a pile which is involved in a transaction
that mean that pile get his coin weight and coin age reset to zero
if u have only one big pile of coins and u send every 2 days a little outgoing transaction
u will never ever be able to mint because u always destroy the coin weight before its big enough u get a minting possibility

min time is 9 days for DMD which mean once ur pile of coins is at least 9 days old he can compete to try mint a block if ur wallet is unlocked
between mint time and max time every successful minting will be split stake

max time is 30 days for DMD which means coin weight dont grow even if ur coins are older than 30 days (but ur coin age grow without limit even after 30 days)
any minting with coins  older than 30 days will use group stake mechanism

split stake means when a pile of coins successful mint a block and is below 30 days old he will be split in 2 pile of coins where both pile will be increased with half of pos rewards u earned

group stake will be attempted by coin pile below 100 dmd and older than 30 days the they no longer are forced to try mint alone but can group with other coin pile also older than 30 days and below 100 dmd size
up to 100 DMD can group up and try to mint together. if successfull they merge together forming a single pile and get the earned pos rewards added to that pile. coin pile above 100 coins cant group but when they mint the group stake mechanism will prevent them from being split in 2 pile

pos difficulty u can see when u enter getdifficulty into console
it determine the chance that u will be able to mint
similar to POW but this time not pure hashrate of complex hashes and luck determine who able create next block
instead simple hashes created by  wallet via cpu  and modified with the coin weight of pile which try to mint compete against each other on the network

pos block time a diff adjusting will try to raise and lower pos difficulty to reach target pos block time (in case of DMD its 100sec)

pos reward determined by coin age and actual pos stage of coin
example 50% per anno  pos reward means a pile with 1000 dmd and age 30 days will if he mint successfull be
1000+(1000/100*50/12)= 1041.67 dmd



why?
why POS works this way have the reason all this mechanics try to make sure coin opile size is small enought to make sure always someone try to mint and so we never run out of attempts to solve a  POS block. and the group coin mechanic try to counter that coins get endless split and in the are so small pile which have hardly a chance to mint successfull
a POS coin which utilize split stake but not group stake will run sooner or later in troubles where people forced to manually do something to fix the mess
DMD POS setup allow endless POS without any manual merge of coins or transactions between addresses are required to get rid of the lot little coin pile


----------------------------------

im pretty sure this answer is overkill for whatever u wanted to know
but it describe the prove of stake mechanism as detailed as possible

and i lead to more confusion in the face of people i explain it  8)

----------------------------------
BELOW Coin specs so u see how POS changes over time:

Proof of Stake
From 450,000 to 1,500,000 of total coins PoS is set to 50% per annum.
From 1,500,000 of total coins PoS is reduced to 25% per annum.
From 2,500,000 of total coins PoS is reduced to 5% per annum.
From 3,500,000 of total coins PoS is reduced to 1% per annum.

Proof of Work

From 1,000,000 of total coins reward is reduced to 0.2 DMD per solved block.
From 2,500,000 of total coins reward is reduced to 0.04 DMD per solved block.
After that there will be no further reductions to the reward per solved block.


----------------------------------------------

VISUALIZATION OF DIAMOND ROLL-OUT PLAN
(TOTAL COINS AND POW/POS COINS PER MONTH)




RED LINE = new coins each month produced by POW (numbers on right side)
GREEN LINE = new coins produced each month by POS (numbers on right side)
TOTAL COINS (numbers on left side)
numbers on bottom of graphic are the months (the graphic represent a 30 year timeline)

but keep a closer eye on coin specs and check how coin roll-out will develop over next 30 years

beginning with total coins 450000 a 50% POS will be simultaneous active with the 1 DMD POW reward each block
and start the diamond rush (BLUE CIRCLE) on pic

if u analyze that u can see that this POW mining paradise only last a few months
(to be exact until 1 million total diamond are existing)
later most of coins are produced by POS  (GREEN ARROW) and to do so u need to have diamonds

everyone who sell 1 diamonds instant lose like at least 2 diamonds.....
because every diamond u mine now would at least double if u keep holding and pos it over time

the whole design of diamond is to be a wealth storage coin aimed to be a good investment

i  hope this visualization of coin specs long-term effect of  on coin roll-out
can help u realize how valuable diamonds will be once POW is reduced by 90%
and high POS will be main source of coin creation

that coins are required to create more coins (POS)
will be the reason for lower availability of coins on exchanges and increasing prices
remember only coins in ur wallet gather coin-age and can generate POS rewards


we are now in that time window where the 1 DMD POW reward ended but the high 50% POS rate still is active for a lot months
Thanks!  This is not too detailed for me.  It is exactly what I was looking for.
« Last Edit: August 18, 2015, 01:14:19 AM by cryptonit »

cryptonit

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Re: Minting
« Reply #2 on: September 01, 2014, 03:45:48 PM »
Thanks!  This is not too detailed for me.  It is exactly what I was looking for.

yw

i put lot effort to try explain something
that need ages to discover in reverse engineering


stillontop

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Re: Minting
« Reply #3 on: September 04, 2014, 03:38:15 AM »
I still did not get it clearly, the PoS / Minting thing.
Do I recieve more Diamond Coins, if I leave the wallet open all the time, or is the amount exectly the same, when I open it only once a month?

cryptonit

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Re: Minting
« Reply #4 on: September 04, 2014, 10:36:13 AM »
I still did not get it clearly, the PoS / Minting thing.
Do I recieve more Diamond Coins, if I leave the wallet open all the time, or is the amount exectly the same, when I open it only once a month?

ur earnings are slightly higher just a tiny bit because u maybe find a POS block earlier and so the earned POS reward starts gathering up coin-age earlier

they main benefit of have ur wallet online 24/7 is for the network not for urself

as said before if u open ur wallet one (or twice) a month a day in unlocked for minting mode it should be enough to mint ur coins


stillontop

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Re: Minting
« Reply #5 on: September 05, 2014, 07:24:38 PM »
Thank you for clarification. I have got a problem with minting. I have one transaction from yesterday, it says:

Unconfirmed (0/6 Confirmations)
Generated but not accepted
Minted

Its 4.05 DMD and I really would like to get them. More info in my attachment, please help :)

Thank you!

cryptonit

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Re: Minting
« Reply #6 on: September 07, 2014, 11:52:28 PM »
Thank you for clarification. I have got a problem with minting. I have one transaction from yesterday, it says:

Unconfirmed (0/6 Confirmations)
Generated but not accepted
Minted

Its 4.05 DMD and I really would like to get them. More info in my attachment, please help :)

Thank you!

its a orphan minted block
because it wasnt accepted u lost no coinage
so ur coins will try to mint again

happens from time to time same as with POW on POS it can happen that 2 wallets claim to found the next valid block at close to same time
only one will be accepted from blockchain the other one go orphan

cryptonit

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Re: Minting
« Reply #7 on: September 18, 2014, 05:40:17 PM »
I have some question for Cryptonit:
- Why my minted DMD (over 200 confirm, over 7 days) is not existed in Coin Control list?
- After DMD coin is minted, when is it ready for staking (7 days or never)?

hi tanakan

how u identify the minted DMD in coin control?

the amount u see in the transaction overview isnt the size of the coin pile

depending if its a split stake or single stake or a group stake different things can happen

in any case the amount of POS-reward wont be visible as a own pile instead added to the stake that earned it

most easy to explain case is a single stake with lets say a pile of 1000 DMD and a age of 60 days
when he mint u see something like 80 DMD as pos reward
but u wont see a 80 DMD coin pile
instead once the stake did return to balance u see a 1080 DMD coin pile

now lets look what happens if u have a split stake (stake with coin age between 7 and 30 days)

if u have a 1000 DMD coin pile which was able to split stake at a age of 20 days following would happen
when he mint u see something like 27 DMD as pos reward
but u wont see this 27 DMD coin pile
instead once the stake did return to balance u see a 527 DMD and a 500 DMD coin pile
(split stake mean coin pile is split in 2 pile and pos reward added to the first one)

cryptonit

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Re: Minting
« Reply #8 on: April 27, 2015, 04:01:44 PM »
bump