xk5



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NewbieActivity: 18Merit: 0 PPCoin Proof of Stake Minting Setup Guide April 25, 2013, 08:13:09 PM

Last edit: May 15, 2013, 10:26:17 PM by xk5 #1 PPCoin Proof of Stake Minting Setup Guide



One of the unique features of PPCoin is the concept of "Proof of Stake" which allows stakeholders (essentially anyone with PPC in their wallet) to generate "interest" on their reserves. Since I could not find an easy to read guide I have written one myself so that you can start collecting "Proof of Stake" on your PPCoin balance as well!



Step One:



As with all Crypto Coins is to encrypt your wallet... so run the PPCoin-Qt go to the options menu and encrypt your wallet with a strong password. DO NOT LOSE THE PASSWORD OR YOU LOSE ALL YOUR COINS... FOREVER!!!! Sorry to be melodramatic but it's important!



Step Two:



Go to your %appdata% folder (usually something like C:\Users\Admin\AppData\Roaming\PPCoin) and create a PPCoin.conf text file as follows.



Code: #ppcoin.conf

# JSON-RPC options (for controlling a running ppcoind process)



#Server mode allows Qt to accept JSON-RPC commands

server=1



# You must set rpcuser and rpcpassword to secure the JSON-RPC api

rpcuser=<A username>

rpcpassword=<A random password>



#The reserve balance field is the minimum amount of coins you want to have available and NOT put up as stake.

#The reason for this is that if you are generating proof of stake you cannot spend those coins for 520 blocks.

#reservebalance=10000



Note that the username and password can be anything it doesn't matter (it is NOT your wallet password and you should not make it your wallet password for security reasons) so make it something long and obnoxious.



For more info on reservebalance check the FAQ ->



Step Three



Now run the PPCoin-Qt program and open your wallet. Go to wherever PPCoin is installed: Usually it's C:\Program Files (x86)\PPCoin\, in that folder you will see PPCoin-Qt.exe along with a daemon folder. Within the "daemon" folder create a batch file called "mint.bat".



Code: @echo off

@echo Enter PPC password...

SET /P variable=Password :

ppcoind walletpassphrase %variable% 9999999 true



This batch file will ask you for your wallet password and will unlock your wallet for minting purposes only, any transfers will still require your password to be initiated. This must be run each time the client is restarted.



If you did everything correctly you can hover over the lock icon in the lower right corner and it will say "Wallet is encrypted and currently unlocked for block minting only". In theory you could just have a shortcut or batch file with the password entered but then you'd have a shortcut that has your wallet password sitting in plaintext on your computer which is a terrible idea!



Step Four



Sit back and relax.



Once you have the client running and you are getting the "unlocked for block minting only" message over the lock you just sit back (for a long time) and let the interest accrue.



It will be approximately 1% per year on your PPC balance. Note that it takes a while for freshly minted coins to mature so you will not see interest generated right away.



Extra Information:

The current release of the client will send coins without a password while in minting mode (this may be changed in a future update).



Proof of Stake Important Concepts

Coin-Age: I receive 10 coins from Person X and hold them for 30 days, those particular coins have a combined coin age of 300 coin-days.

Generating A Coinstake: Once minting is unlocked you can generate a coinstake which consumes your coin age in exchange for generating a block with profit. The greater the coin age the higher probability that the proof of stake will be generated, if you are offline for a couple years for example when you reconnect you will probably generate a proof of stake almost immediately however you may have missed opportunities for compounding earlier.

Transferring coins to another person: Destroys all coin-age attached... only static coins gain age.



For detailed info please review the ppcoin whitepaper ->





Questions / Comments

If you have any questions post here and I'll try and update this guide with any needed information!



If you found this guide helpful my Tip addresses are:

PPC: PXWSoRA2c6qbiy6o4pS4tt68S6jtssEGQU BTC: 1HujuRGYtFgj7Em1pnhX22KAYnY9sxGAR6 LTC: LPiK3W3F7uqDHsBumArby7akVf7zW9UrhG One of the unique features of PPCoin is the concept of "Proof of Stake" which allows stakeholders (essentially anyone with PPC in their wallet) to generate "interest" on their reserves. Since I could not find an easy to read guide I have written one myself so that you can start collecting "Proof of Stake" on your PPCoin balance as well!As with all Crypto Coins is to encrypt your wallet... so run the PPCoin-Qt go to the options menu and encrypt your wallet with a strong password. DO NOT LOSE THE PASSWORD OR YOU LOSE ALL YOUR COINS...!!!! Sorry to be melodramatic but it's important!Go to your %appdata% folder (usually something like C:\Users\Admin\AppData\Roaming\PPCoin) and create a PPCoin.conf text file as follows.Note that the username and password can be anything it doesn't matter (it is NOT your wallet password and you should not make it your wallet password for security reasons) so make it something long and obnoxious.For more info on reservebalance check the FAQ -> https://github.com/ppcoin/ppcoin/wiki/FAQ Now run the PPCoin-Qt program and open your wallet. Go to wherever PPCoin is installed: Usually it's C:\Program Files (x86)\PPCoin\, in that folder you will see PPCoin-Qt.exe along with a daemon folder. Within the "daemon" folder create a batch file called "mint.bat".This batch file will ask you for your wallet password and will unlock your wallet for minting purposes only, any transfers will still require your password to be initiated. This must be run each time the client is restarted.If you did everything correctly you can hover over the lock icon in the lower right corner and it will say "". In theory you could just have a shortcut or batch file with the password entered but then you'd have a shortcut that has your wallet password sitting in plaintext on your computer which is a terrible idea!Sit back and relax.Once you have the client running and you are getting the "unlocked for block minting only" message over the lock you just sit back (for a long time) and let the interest accrue.It will be approximately 1% per year on your PPC balance. Note that it takes a while for freshly minted coins to mature so you will not see interest generated right away.The current release of the client will send coins without a password while in minting mode (this may be changed in a future update).: I receive 10 coins from Person X and hold them for 30 days, those particular coins have a combined coin age of: Once minting is unlocked you can generate a coinstake which. The greater the coin age the higher probability that the proof of stake will be generated, if you are offline for a couple years for example when you reconnect you will probably generate a proof of stake almost immediately however you may have missed opportunities for compounding earlier.: Destroys all coin-age attached... only static coins gain age.For detailed info please review the ppcoin whitepaper -> http://www.ppcoin.org/static/ppcoin-paper.pdf If you have any questions post here and I'll try and update this guide with any needed information!PPC:BTC:LTC:

xk5



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NewbieActivity: 18Merit: 0 Re: PPCoin Proof of Stake Minting Setup Guide April 25, 2013, 11:12:41 PM #6 Quote from: vindimy on April 25, 2013, 09:24:51 PM

Thanks, I've updated my post above saying that indeed the PPCoin-Qt's status message changed

Great!



Quote Also, if you know about how stake rewards work, could you elaborate on:



I'm really fuzzy on what is the difficulty of finding stakes is. Assuming I did find one, though, I guess 1% means I'll be getting 1 PPCoin per 100 PPCoins in wallet?



You are now passively generating "Proof of Stake", the unique feature of PPCoin, essentially a small amount of interest just from holding the currency.



So as long as your wallet is unlocked as shown in the main post you will average about 1 PPC per 100 PPC each year. Any coins you have need to mature for a while so you won't see the "interest" for a while.



Quote Now, ppcoind says generate=false when I do "getmininginfo", does it mean it's not mining?



Yes, it's not mining in the traditional sense which is generally applied to "Proof of Work" blocks... for that you should use a separate program such as Reaper or CGMiner, just like with Bitcoin or Litecoin. You can find more info on that here ->



Great!You are now passively generating "Proof of Stake", the unique feature of PPCoin, essentially a small amount of interest just from holding the currency.So as long as your wallet is unlocked as shown in the main post you will average about 1 PPC per 100 PPC each year. Any coins you have need to mature for a while so you won't see the "interest" for a while.Yes, it's not mining in the traditional sense which is generally applied to "Proof of Work" blocks... for that you should use a separate program such as Reaper or CGMiner, just like with Bitcoin or Litecoin. You can find more info on that here -> http://cryptocur.com/ppcoin-ppc-mining-guide-gpu/ . You can have both going at the same time, "Proof of Work" is actively mining more PPC blocks (normal mining) while your "Proof of Stake" (your PPC balance in your wallet) is passively accumulating interest over time.

xk5



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NewbieActivity: 18Merit: 0 Re: PPCoin Proof of Stake Minting Setup Guide April 26, 2013, 02:59:06 AM #10 Quote from: FreeBit on April 26, 2013, 01:09:09 AM Question:



If I mint with 100PPC, how high is the probability to receive - let's say - 0.1 ppc after 30 days?



How is the minting rate and amount calculated?



HowMuchCoinsPerDay(n: Coins, x: CoinAge)





Added some info to the first post...



Proof of Stake Important Concepts

Coin-Age: I receive 10 coins from Person X and hold them for 30 days, those particular coins have a combined coin age of 300 coin-days.

Generating A Coinstake: Once minting is unlocked you can generate a coinstake which consumes your coin age in exchange for generating a block with profit. The greater the coin age the higher probability that the proof of stake will be generated, if you are offline for a couple years for example when you reconnect you will probably generate a proof of stake almost immediately however you may have missed opportunities for compounding earlier.

Transferring coins to another person: Destroys all coin-age attached... only static coins gain age.



For detailed info please review the ppcoin whitepaper ->



The actual probability of it generating does adjust based on network factors.

Added some info to the first post...: I receive 10 coins from Person X and hold them for 30 days, those particular coins have a combined coin age of: Once minting is unlocked you can generate a coinstake which. The greater the coin age the higher probability that the proof of stake will be generated, if you are offline for a couple years for example when you reconnect you will probably generate a proof of stake almost immediately however you may have missed opportunities for compounding earlier.: Destroys all coin-age attached... only static coins gain age.For detailed info please review the ppcoin whitepaper -> http://www.ppcoin.org/static/ppcoin-paper.pdf The actual probability of it generating does adjust based on network factors.

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LegendaryActivity: 1876Merit: 1000 Re: PPCoin Proof of Stake Minting Setup Guide April 26, 2013, 03:42:10 AM

Last edit: April 26, 2013, 03:59:05 AM by jjiimm_64 #11 Quote from: Sunny King on April 25, 2013, 09:36:59 PM Good guide thanks! One more thing, in the minting-only unlock mode, you cannot send coins in gui I think in the current release. In order to send coins you should lock wallet first and then send as usual.



ppcoind walletlock



I followed the guide .. created the bat file. when I execute the bat file I get this:



Code: c:\Program Files (x86)\PPCoin\daemon>mint

Enter PPC password...

Password : xxxxxxxxxxx

error: {"code":-17,"message":"Error: Wallet is already unlocked, use walletlock

first if need to change unlock settings."}



c:\Program Files (x86)\PPCoin\daemon>



but the gui still says Minting suspended due to a locked wallet.





edit: after a while the gui is right and now the client is unlocked for block minting purpose... Thank you for the guide....



I followed the guide .. created the bat file. when I execute the bat file I get this:but the gui still says Minting suspended due to a locked wallet.edit: after a while the gui is right and now the client is unlocked for block minting purpose... Thank you for the guide.... 1jimbitm6hAKTjKX4qurCNQubbnk2YsFw

Sunny King



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LegendaryActivity: 1205Merit: 1003 Re: PPCoin Proof of Stake Minting Setup Guide April 26, 2013, 04:01:22 AM #12 Quote from: jjiimm_64 on April 26, 2013, 03:42:10 AM

I followed the guide .. created the bat file. when I execute the bat file I get this:



Code: c:\Program Files (x86)\PPCoin\daemon>mint

Enter PPC password...

Password : xxxxxxxxxxx

error: {"code":-17,"message":"Error: Wallet is already unlocked, use walletlock

first if need to change unlock settings."}



c:\Program Files (x86)\PPCoin\daemon>



but the gui still says Minting suspended due to a locked wallet.



edit: after a while the gui is right and now the client is unlocked for block minting purpose... Thank you for the guide....



I followed the guide .. created the bat file. when I execute the bat file I get this:but the gui still says Minting suspended due to a locked wallet.edit: after a while the gui is right and now the client is unlocked for block minting purpose... Thank you for the guide....

Yeah the gui has a little delay to update so if you ran the script twice it would report that error on the 2nd time. Yeah the gui has a little delay to update so if you ran the script twice it would report that error on the 2nd time.

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Sr. MemberActivity: 252Merit: 250 Re: PPCoin Proof of Stake Minting Setup Guide April 26, 2013, 11:52:26 AM

Last edit: April 26, 2013, 12:50:58 PM by Shevek #13 I'm interested in projects like this, against the stupid hashrate race that contributes nothing to bitcoin (indeed it promotes recentralization through pools). In fact I have my own ideas about the topic, not to be discussed here, of course.



I'm not sure if I understood well the concept of "proof of stake" (PoS).



1) If I try a block and I have no success... is my stake wasted?

2) Are the difficulties of proof-of-work and proof-of-stake different?

3) Doesn't this PoS promote hoarding?

4) I don't see how PoS can secure the network, because there is no special incentive for a node to keep in. I can gain my coins, disconnect the node, and after some weeks return to get my reward.



TIA for your answers/comments Proposals for improving bitcoin are like asses: everybody has one

1SheveKuPHpzpLqSvPSavik9wnC51voBa

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MemberActivity: 106Merit: 10 Re: PPCoin Proof of Stake Minting Setup Guide April 26, 2013, 12:14:32 PM #14 Question:



When I have 100 CoinYears accumulated, do I have to wait around one year to get one Coin or it is more probably to get 1/365 Coins per day?



What is the minimal amount of Coins generated by minting?





As you can see, I don't get. Maybe I am too stupid or the ones who get it are way above the average. I didn't found anything online that explained the minting mechanismin way, that I understood it. FAQ on ppcoin.org have to explain this way much better ....





With 100 CoinYears do I have to wait one year or will I get 0.00000x Coins every hour?

What are the concrete probabilities? Examples? How is difficulty influencing this?



I simply do not find this information (and I am pissed off because of this and the way how this is treated)!









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LegendaryActivity: 1205Merit: 1003 Re: PPCoin Proof of Stake Minting Setup Guide April 28, 2013, 12:17:06 AM #16 Quote from: Shevek on April 26, 2013, 11:52:26 AM I'm interested in projects like this, against the stupid hashrate race that contributes nothing to bitcoin (indeed it promotes recentralization through pools). In fact I have my own ideas about the topic, not to be discussed here, of course.



I'm not sure if I understood well the concept of "proof of stake" (PoS).



1) If I try a block and I have no success... is my stake wasted?

2) Are the difficulties of proof-of-work and proof-of-stake different?

3) Doesn't this PoS promote hoarding?

4) I don't see how PoS can secure the network, because there is no special incentive for a node to keep in. I can gain my coins, disconnect the node, and after some weeks return to get my reward.



TIA for your answers/comments



1) Stake comes from successfully generating a block, there is no separate operation to declare your stake. So only when you find a block part of your balance is converted into stake, for the next 520 blocks.

2) Yes the difficulties are separate.

3) hoarding also has another name called 'saving'.

4) keeping the wallet open for more time would allow minter more chance to find blocks and split your large coins to better size so to reduce your wastage of coin age when you spend. But yes there is very little pressure to keep wallet running 24x7 as ppcoin intends to be energy efficient so you can just run it when you use your computer. 1) Stake comes from successfully generating a block, there is no separate operation to declare your stake. So only when you find a block part of your balance is converted into stake, for the next 520 blocks.2) Yes the difficulties are separate.3) hoarding also has another name called 'saving'.4) keeping the wallet open for more time would allow minter more chance to find blocks and split your large coins to better size so to reduce your wastage of coin age when you spend. But yes there is very little pressure to keep wallet running 24x7 as ppcoin intends to be energy efficient so you can just run it when you use your computer.

Sunny King



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LegendaryActivity: 1205Merit: 1003 Re: PPCoin Proof of Stake Minting Setup Guide April 28, 2013, 12:20:27 AM #17 Quote from: FreeBit on April 26, 2013, 12:14:32 PM Question:



When I have 100 CoinYears accumulated, do I have to wait around one year to get one Coin or it is more probably to get 1/365 Coins per day?



What is the minimal amount of Coins generated by minting?



As you can see, I don't get. Maybe I am too stupid or the ones who get it are way above the average. I didn't found anything online that explained the minting mechanismin way, that I understood it. FAQ on ppcoin.org have to explain this way much better ....



With 100 CoinYears do I have to wait one year or will I get 0.00000x Coins every hour?

What are the concrete probabilities? Examples? How is difficulty influencing this?



I simply do not find this information (and I am pissed off because of this and the way how this is treated)!



It's a random process, basically the more coins you have and more often you keep wallet running the better chance you will generate blocks.



No, you don't get interest every hour, you only get paid if you find blocks. If you do there will be a 'mint-by-stake' transaction in your wallet. It's a random process, basically the more coins you have and more often you keep wallet running the better chance you will generate blocks.No, you don't get interest every hour, you only get paid if you find blocks. If you do there will be a 'mint-by-stake' transaction in your wallet.