Why we chose for PoS & benefits of holding Vites?
The Nist5 hashing algorithm is a fairly new algorithm seeing more and more mainstream adoption through cryptocurrencies. Although Nist5 can also be mined we chose to only allow staking as mining is a process where many crypto outsiders view as difficult and cost prohibitive. We want to make sure everyone can easily benefit for holding their Vites.
Vites is a proof-of-stake cryptocurrency, which means users get a periodic reward for owning and staking their coins. Staking rewards can be compared to interest on a bank account. These rewards are earned because staking coins helps to secure the Vites network.
The process of staking is fairly simple. A user simply has to ensure their wallet is connected to the network, and hold an amount of Vites in their wallet.
The Nist5 algorithm is a technology that combines several finalists from the NIST hashing competitions over the years.
It consists of:
PoS algorithm: Nist5
Max supply: 50.000.000.000
Circulating supply: 30.000.000.000
Development fund: 5.000.000.000
Block time: ± 2,5 minutes
Block size: 8 MB
Block rewards: 10-20% year one
Difficulty: re-target 60 minutes
Confirmation time: 10 blocks (± 25 minutes)
Stake maturity: 30 blocks (± 75 minutes)
Minimum age to stake: 8 hours
PoS Period: Infinite
Time until all coins are mined: At current PoS rate 1,5 – 2 years. But within- or after the first year we are re-adjusting the PoS rate to a significant lower ROI. And we’re going to explore the benefits of adding masternodes. All the changes within- or after the first year will be for the health of the project.
Staking rewards are 10% annual. If you stake your coins more frequently, you can even gain up to 20% annually with the gained compounding interest.