Virtual hash power
Andrew Levine posted an update on the Koinos Proof of Burn implementation today.
Here's the short version:
- Testnet has been bug free => more time for development
- Moving from Miner NFTs -> "Virtual Hash Power" (VHP) fungible tokens
- Block rewards are randomly distributed based on your VHP, much like PoW
- Mining pools will help increase decentralization
- VHP will be used for governance voting power (much like bitcoin)
The benefit of this design is greater liquidity. If you try to mine and decide you want your Koin back, it will be easier to sell VHP than an NFT.
Additionally, mining pools will allow average Koin holders to support developers and community members without spending any capital. Just stake your Koin/VHP on my contract and reap a portion of the mining rewards. Doing this will also delegate your voting power to the person behind the mining pool. I intend to operate a mining pool with mainnet, so if you want to support The Koin Press, I'll send more details at that time.
Ultimately, I think this is an improvement as it's a simpler design. The team is doing a great job of collecting feedback, listening, and iterating. Any improvements to this design can be performed later without a hard fork, thanks to upgradeable smart contracts.
P.S. Andrew also made a great point on Twitter recently that because they don't buy developer/community engagement like other blockchains, they get much higher quality feedback. Everyone involved is here because they want to use the best tools, not just get a paycheck.