Best address management for holding, voting and minting NuShares

I am wondering if it is better to keep all NSR in one address or split it up into multiple addresses. I read that for stake minting it splits the stake up into 10,000 NSR outputs, but am not entirely sure the motivation for that.

Does what I am calling address management make any difference in regards to ability to mint a block or secure all of my votes into the blockchain? Will I have better or worse results just holding all of my NSR in one address?

The short answer is that minting will work the same and you will mint the same number of blocks whether you choose to split NSR into different addresses or place them all in one address.

The long answer is that in some circumstances splitting NSR into different address may reduce your minting power slightly. By default, the client splits transfers into outputs of 10,000 NSR each. Let’s imagine you have 1,000,000 NSR and you place it all in one address. You will have 100 outputs with 10,000 NSR each. When one of those outputs mints, it cannot mint again for 7 days. However, the other 99 outputs can mint. If the entire 1,000,000 NSR were placed in a single output as is typical for other blockchain technologies, when you found a block, the entire 1,000,000 NSR would be ineligible to mint for 7 days.

Let’s say you split your 1,000,000 NSR into three addresses in quantities of 5,000, 497,500 and 497,500. The address with 5,000 is useless for minting due to the 10,000 minimum required. Each of the other two addresses will have 49 outputs. One output at each address will have 17,500 NSR in it, so that output will have a 75% higher chance of minting compared to the 10,000 NSR outputs, but when it does, you will have 17,500 NSR ineligible for minting for 7 days instead of 10,000 as in most cases.

Because it takes an average of about 5 weeks for an output of size 10,000 at the present difficulty, any NSR in an output in excess of 10,000 will only be 80% as effective as it would be in an output of size 10,000.

Dividing NSR into three address as in my example above would reduce minting power by about 0.6%.

The summarized information is that if you always transfer in increments of 10,000 there will be no loss of minting power from using multiple addresses. If you transfer in amounts less than 10,000 that NSR will be useless for minting. If you transfer in large amounts not divisible by 10,000, the remainder or modulus of division by 10,000 is only 80% as effective.


Response has been added to the FAQs on our website:

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If I have two addresses each with a single 15,000 NSR input, how many votes am I casting when I mint a block?

One block, one vote.

Each vote can be for different things (different motions, grants, parking rates), but each block only counts for one vote for each of those.