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Not capital burned, because it's reimbursed by the network via fees.
by konschubert 8y ago
Not capital burned, because it's reimbursed by the network via fees.
- wmf 8y agoWith PoW all you get back are block rewards and fees; your hardware and energy are burned. With PoS you get block rewards and fees and you get your original stake back. Of course at equilibrium this means the rate of return from staking can be much lower.
- konschubert 8y agoIt also means that a network based on PoS is much cheaper to maintain if we assume equal RoI between PoS and PoW. This is great and should give PoS a competitive advantage.