3 ms·
If PoS is rent-seeking how come PoW isn't rent-seeking?
by Kbelicius 7y ago
If PoS is rent-seeking how come PoW isn't rent-seeking?
- heimatau 7y agoIn a PoW network (read Bitcoin), those that have the currency (satoshis/'sats') don't gain any more sats by just possessing them. The only way to gain more is from either those that have some or to mine more (until 2140). In a PoS network, those that have the currency can "stake" their possessions to gain more. They don't need to spend in hardware/electricity to mine more. There is a built in function to extract currency.