POS for noob

Fatal_errorFatal_error Member Posts: 2
i can't find the straight answer to my very simple question.

ive been mining eth for sometime and sold most of my eth during christmas...

ive been mining different other coins since.. and i probably have less than 0.5 eth left in my wallet.

my very noob question is what do i do with my eth after pos.. should i leave it in the wallet? is it going to be tradable lthe same way?

i dont want to know what pos is, i read a few pages and still don't understand crap...

i just want to know what people who doesnt have much eth, like me , have to do with our eth once it becomes pos. do we have to do something .. i read stuff about staking but how and where do we do that with only 0.5 eth in the wallet


Comments

  • o0ragman0oo0ragman0o Member, Moderator Posts: 1,288 mod
    POS (Proof Of Stake) is the system of validation and block generation that Ethereum will be moving to instead of Proof of Work (POW) mining. This will transition across a couple of hard forks where both systems will initially be used, POS for validating transactions and POW more for just timing out blocks. POW rewards will drop significantly (~0.3eth) after the first fork and become uneconomical after the second (google ethereum ice age)

    Ether remains transferable/spendable as always.

    In Proof of Stake, which for Ethereum is a system call 'Casper', a couple of 1000 'validators' take on the roll of validating transactions and producing blocks. To become a validator requires a significant 'staking' of ether (>1000eth) be deposited in a staking contract after which you receive an interest like income (instead of block rewards).

    Validators essentially 'bet' on an order of valid transactions in a way that incentivises agreement among validators, i.e, the bets start at almost even odds, but once the validators see how each of the other validators are betting, they will rapidly agree on one outcome. To disagree is to lose the bet.

    If a validator is proven to have cheated, such as placing bets on two different outcomes, their entire stake is 'slashed' (the ether is burned) and they no longer have any influence in the validation process.
  • Fatal_errorFatal_error Member Posts: 2
    The question is, what do i do with my 0.5 eth after it becomes pos.

    Can i just leave it in the wallet ? will the value go up in the wallet ?
  • o0ragman0oo0ragman0o Member, Moderator Posts: 1,288 mod
    It will stay 0.5eth until you move it somewhere else. If someone decideds to maintain the current chain after the PoS fork, then you will have 0.5eth and 0.5 what ever they decide to call it.

    If you want to invest in a PoS pool (like mining pool but for PoS) the you might get a few %pa interest on it.
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