MIP-0002 - Migration to Proof of Stake (PoS)
Presented to the Core Contributor Team on October 5th, 2020 by user Stoner19
The current process of mining, Proof of Work (PoW) significantly limits who is able to participate in the process of solving blocks, a.k.a. mining. When Peach algorithm was introduced it was done so, in part, to optimize mining for GPUs thus rendering CPU mining virtually impossible.
Implementing Proof of Stake increases the opportunity for more users to participate in the mining process by utilizing their balance rather than physical hardware. This serves multiple purposes:
- Further decentralizes the network by rewarding balance holders with solved blocks rather than centralized mining pools or GPU farms
- Incentivizes users to run their wallet or daemon by rewarding anyone with a positive MCM balance to participate in mining
- Eliminates the need for Core Development Team to spend any more time making modifications to the code for the sole purpose of deterring FPGA or ASIC mining
While traditional PoS does require some balance in a wallet in order to participate in the network, it at least gives users with small balances an opportunity to mine without having to build a GPU rig.
Hard Fork Required
- Core code would have to be refactored in order to define address weight on the network
- Minimum coin age of 1792 blocks (7 days)
- Maximum coin age of 46720 blocks (182.5 days, half of a year)
- Establish minimum WOTS+ address balance to participate in PoS
- Establish maximum WOTS+ address balance for PoS network weight to prevent any single "whale" from taking over the chain
Suggested modifications to traditional PoS
- PoW/PoS hybrid model that splits the block reward equally between the two
- Timelock to earn interest. This allows users to lock up their MCM for a designated number of blocks and in turn are rewarded for not spending their balance, and eliminates the need for them to run a wallet or daemon constantly.