# Gridcoin reward calculation

*This article is about Gridcoin.*

In the new system there are two ways to earn Gridcoin:

1) Proof of stake: You get Gridcoins for securing the payment system, the amount you get depends on how many gridcoin you already own. The interest you receive per year starts at 4.81% the first year and then 1%. Since the percentage of Gridcoins you have of the total number does not change when you secure the system all the time, this can also be interpreted as a tax for not securing the system: If you have gridcoin but do not use them to secure the system, you lose a certain percentage of the relative amount of Gridcoin you have per year.

2) Proof of research You get Gridcoins for working on BOINC projects. There's a fixed amount of Gridcoins to be earned per year and how much you earn depends on how much computing power you give to BOINC relative to all other contributes of team Gridcoin. Due to the minting of new Gridcoins every year, all other Gridcoins are under the influence of inflation, as the total growth of currency units from Proof of Research is higher than the growth though proof of stake. This gives a chance to new users to participate in Gridcoin, if it was only proof of stake Gridcoin wouldn't be a good investment for people that hear about it very late.

the classic future coin schedule is baked into the client for smooth transition around 2014-10-20:

Block Height 1-199000: (IE From 10-20-2013 through 10-20-2014): Max Reward: 150 + Interest, based on boinc participation

Block Height: 199000 through 285400: Max Reward: 10 + Interest, based on Scrypt Mining only

Block Height > 285400 (Approx Mar 30 2015): Max Reward: .1 + interest, based on Scrypt Mining Only (This is when coin burning ends)