RDD volume for staking

Troubleshooting
#1

Wasnt sure where to ask questions, but i suppose accademy is the place to learn.

So i have managed to sync wallet, deposit a small amount of coins (13K) and see it start staking, that is if you can call 800+ days to get something worth while.

So naturaly question is what volume of coins would be needed to actually be worth staking?

#2

LithStud this is a good location to learn.

To be honest, 13,000RDD is not a large amount (~ 0.50usd) to be staking.
And at 5% interest you could expect to earn 666.477 RDD (~0.025usd) per year

the basics

The maths for staking can be approximated using compound interest where the popular formula for calculating annual compound interest is

V = P(1+r/n)^nt

Where
V = the future value of the investment
P = the principal investment amount
r = the annual interest rate
n = the number of times that interest is compounded per year
t = the number of years the money is invested for

A little more advanced staking information

The algorithm for PoSV is not linear interest interest, there is a bonus reward (6% for staking more regularly).
The max interest is earned around 7 days coinage, with the amount tapering off the older coinage is.

There is a good calculator here that tries to demonstrate the outcome of staking.

But to answer your question.
How many coins do you need to make it worth staking?
Well you will want to be covering your electricity costs as a minimum.

as a starting point 5MM coins should see you staking approx once a day

However, the amount to invest is a personal choice, and the calculator should help you decide.
https://agroff.github.io/posv/

#3

Gnasher so to see if i understood it right.
Even if i leave these 13000 coins i would still probable get some coins sooner than what wallet is predicting (those 800+ days) since coins increase in weight by time?

Your link is very interesting, probably first time i get to read how it works so clearly (assuming i understood it :D)

#4

LithStud the function of staking is random.
A bit like a lottery.
The more tickets (coins) you hold, the high chance you have of finding a block (and staking a reward)

The calculator site is a good explanation of the process with demonstration

#5

Gnasher i do understand that more you have more you get principle. What i meant that coins increase in weight by time as well. Atleast thats what i get when trying out that last calculator.

#6

LithStud Thats right, coinage (weight) is factored into the calculation and it multiplies the staking value.

The actual function below calculates the coinage weight

There are 2 factors in calculating the weight
Coins with age <= 7 days are calculated using this formula

    if (days <= 7)
    {
        weight = -0.00408163 * pow(days, 3) + 0.05714286 * pow(days, 2) + days;
    }

And coins with age > 7 days

    {
        weight = 8.4 * log(days) - 7.94564525;
    }

This is the full function of the coinage weight, and it is used to multiply and calculate the final reward

int64_t GetCoinAgeWeight(int64_t nIntervalBeginning, int64_t nIntervalEnd)
{
    if (nIntervalBeginning <= 0)
    {
        LogPrintf("WARNING *** GetCoinAgeWeight: nIntervalBeginning (%d) <= 0\n", nIntervalBeginning);
        return 0;
    }

    int64_t nSeconds = max((int64_t)0, nIntervalEnd - nIntervalBeginning - Params().StakeMinAge());
    double days = double(nSeconds) / (24 * 60 * 60);
    double weight = 0;

    if (days <= 7)
    {
        weight = -0.00408163 * pow(days, 3) + 0.05714286 * pow(days, 2) + days;
    }
    else
    {
        weight = 8.4 * log(days) - 7.94564525;
    }

    return min((int64_t)(weight * 24 * 60 * 60), (int64_t)Params().StakeMaxAge());
}
#7

Gnasher that mean understood it ok :slight_smile: since i am running my pc until i go to sleep it doesnt really cost me anything to have RDD wallet running as well. And there is at least some point to keep small amount of coins since they might get lucky :slight_smile:

At some point i think i will be able gradually increase the amount to get a bit more umph from it than just supporting network :slight_smile:

#8

LithStud great,
As I said, any questions, I am more than happy to respond.

Hopefully, you will see the benefit for longer term supporting the network, and getting a reward in return.

Our next phase, will see additional rewards passed through to those who are staking.
The ReddID and Social-X projects will add to the possible rewards earned by staking.
The rewards do not add any further to the current interest rate, but rather a fee for registering an ID is returned back to the network.

This is a way to encourage, real use and incentive.

#9

Gnasher well i am a bit selfish :slight_smile: i look into this the if i could incorporate it into something i do. So far looks interesting enough and amounts isnt some astronomical number i couldnt achieve in some time :slight_smile: