Crypto Bullion Transitions from POW/POS to PoSP!
Crypto Bullion is proud to announce a new improvement on the now common POS algorithm. Known as Proof-of-Stake-Participation (PoSP), the new algorithm soon to be implemented in Crypto Bullion will better incentivize users that are actively securing the network.
When the transition to PoSP is finalized, Crypto Bullion will become a pure stake coin instead of the hybrid model of POW and POS Crypto Bullion previously implanted to secure their network. Crypto Bullion will remain the same in all other aspects, not changing the 1 minute block times nor the 2% yearly interest rate.
“The wasteful Proof-of-Work algorithm and the problematic “coin age” qualifier have been discarded. PoSP works in such a way that it rewards only the Vaults (CBX software) that are actively connected to the network, with their staking function enabled, starting immediately after the first staking hour.”
The new algorithm means that any offline storages of Crypto Bullion like exchanges or cold storages will not get rewarded as they are not actively participating to help secure the network; this means that while interest rate has not changed, active stakers should see a bump in staking rewards almost immediately, since Crypto Bullion does not enforce a traditional 30 day coin age like other POS coins.
The introduction of PoSP brings an interesting train of thought: either receive payment for providing what the Crypto Bullion Team calls a “protective service” to the network “or they can opt not to stake and forfeit their earnings potential to those who are providing a protective service”.
The updated vault version 2.0 is available for the public now; it is required in order to take advantage of the new algorithm. Users have until December 31, 2015, to make the switch and from then on only vault versions 2.0 and higher will be able to synchronize with the CBX network.
The Original Press Release Source is Bitcoin PR Buzz
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