Morningstar Payment Systems uses a Proof-of-stake (PoS) network to achieve distributed consensus. Unlike proof-of-work (PoW) based crypto-currencies (such as Bitcoin), where the algorithm rewards participants who solve complicated cryptographical puzzles in order to validate transactions and create new blocks (i.e. mining), the creator of the next block in a proof-of-stake crypto-currency is chosen in a deterministic (pseudo-random) way, and the chance that an account is chosen depends on its wealth (i.e. the stake). In PoS cryptocurrencies the blocks are minted (in the U.S. Treasury sense of this word) rather than mined. It works much like a savings account at a bank.

Morningstar’s proof-of-stake system combines randomization with the concept of “coin age,” (number of coins multiplied by the amount of time the coins have been held). Coins that have been unspent for this amount of time begin competing for the next block. Older and larger sets of coins have a greater probability of signing the next block (i.e. creating new coins). However, once a stake of coins has been used to sign a block, they must start over with zero “coin age” and thus wait the specified amount of time before signing another block.  This process secures the network and gradually produces new coins over time without consuming significant computational power.  A malicious attack on the network is very difficult due to the lack of a need for centralized mining pools and the fact that purchasing more than half of the coins is very costly.


Advantages over other crypto-currencies

Effective use of power:

Proof of Work relies on a significant amount of energy use.  Moreover, these energy costs are almost always paid in non-cryptocurrency, introducing constant downward pressure on the price. Proof of Stake currencies can be several thousand times more cost effective.  Below is a chart of the wasteful use of energy consumed by the Bitcoin network.

Earn by holding:

You earn Morningstar simply by owning Morningstar.  You do not need expensive mining equipment, large warehouses, and a high electricity bill.  This equals a higher ROI for you!


Morningstar Payment Systems Specs:

Pure PoS after initial PoW coins are mined
30 seconds block target
Difficulty retargets every block
PoS variable interests: – 1st year: 20% – 2nd year: 15% – 3rd year: 10% – 4th and subsequent years: 5%
4 confirmations for transaction, thus fast 2 mins confirmation for transactions
30 confirmations for minted blocks
Ports: 94722 (connection) and 94622 (RPC)
100 million total coins