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This is a one-sided comment. There’s a lot of research going into different variations of proof-of-stake. 4 out of 10 largest crypto (by market cap) are PoS. Th
by vernon99 9y ago
This is a one-sided comment. There’s a lot of research going into different variations of proof-of-stake. 4 out of 10 largest crypto (by market cap) are PoS. There’s a lot of work Ethereum community (Casper), Cardano folks, Tendermint etc are doing to create better consensus models.
- bitL 9y agoPoS is not going to be very popular as it removes the literal "money out of thin air" that was happening with GPUs in the past few years (coming to end in medium term). PoS strongly favors already well capitalized owners, instead of allowing new ones.
- twiceaday 9y agoDoesn't PoS generate money out of thin air? It's just a matter of putting your dollars into stake vs hardware and electricity.
- JustAnotherPat 9y ago5% a year. You're better off keeping it on an exchange in case of a pump.
- coralreef 9y agoWhat's this 5% figure from?
- nosuchthing 9y agoOnly for the largest account holders, whom statistically will receive most of the newly generated money (and even more as they continue to accumulate newly printed PoS tokens).
- twiceaday 9y agoPoW distributes block rewards proportionally to hash power and these proceeds can be used to buy more hash power to achieve a compounding effect. From what I understand all of the viable PoS systems offer a fixed rate of return on the stake. This is like PoW forcing everybody to use the exact same hardware; a benefit to the little guy at the expense of the large account holders.
- aoeusnth1 9y agoI'm confused - what's your objection? Should capital put into PoS not provide a constant reward? Or are you under the impression that larger pools of capital provide disproportionate rewards?
- tlrobinson 9y agoTransitioning from PoW to PoS seems like a possible solution. Or shortcut the PoW phase by seeding your coin with snapshots of one or more existing coins that had a “fair” distribution phase.
- ktta 9y agoCasper atleast says it is going to be a linear return model, without the asymmetrical return you get with large scale efficiencies.
- nosuchthing 9y agoProof-of-Stake statistically equates to "Give the rich more money". Consider Ethereum's stats (and other similar PoS minting methods): Presale ICO / Premine ( max cost $0.50 USD per ETH ) = 72,009,990 ETH Total Supply today (Feb 23rd 2018) = 97,800,000 ETH Source: https://etherscan.io/stat/supply Now imagine a financial system where all the wealthy have to do simply own money (spawned from software or premine) to get more money. Or where voting is done by merely by controlling a large sum of money/tokens.
- zodiac 9y agoWhat's your proposal for a more egalitarian reward model for block producers (in any consensus model)?
- nosuchthing 9y agoEqual payment for the same work/processing power.
- zodiac 9y agoWhat does that concretely mean?
- curyous 9y agoProof of work, it requires continual investment if you want to get the rewards, not just sitting there watching the cash roll in.
- aoeusnth1 9y agoHow is that more egalitarian? It's still a conversion between capital and income. It's like saying stocks that give dividends are more "egalitarian" because you have to reinvest them in order to gain the same return on investment. Absurd.
- trophycase 9y agoThis is basically how it is now. There is a non-zero risk to staking as well as the stock market/bonds
- deleted 9y ago[deleted]
- mrb 9y agoThe ugly truth is that proof-of-stake systems, at least current ones, give up decentralization properties. Users with the most funds (stakes) can effectively validate and rewrite the blockchain. Or in the case of a network split, the 2 chains can no longer be merged (because they implement "safety" mechanism such as preventing nodes from rewriting more than X blocks.)