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> Proof of stake is more like a "closed system", leading to higher wealth concentration over the long term Unlike Proof of Work, Proof of Stake is not a coin d
by tromp 6y ago
> Proof of stake is more like a "closed system", leading to higher wealth concentration over the long term
Unlike Proof of Work, Proof of Stake is not a coin distribution method.
PoS-only block chains just create all initial coins out of thin air, like a 100% ICO, which is the worst possible concentration of wealth.
- miloignis 6y agoYou're absolutely right that it's not a coin distribution method, but it doesn't lock you into a distribution method. You could come up with one, theoretically. Heck, you could distribute the OG coins via proof-of-work if you wanted to, which is more or less what I believe Ethereum would do, as it started out as a proof-of-work chain and would swap at some point. That actually might be the best way, as you're proving that you believe the coin is worth something in the beginning by burning work, giving your initial stake consequences.
- tromp 6y agoYes, Ethereum did start with PoW, but also with a 70% premine that undermines it with a large concentration of wealth.