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>The only downside of course being that it essentially hard-codes the "1% of people make 99% of the money" principle. Anyone can stake, and the more people tha
by AgentME 4y ago
>The only downside of course being that it essentially hard-codes the "1% of people make 99% of the money" principle.
Anyone can stake, and the more people that stake, the smaller the reward, so the result should end up being that more people join in until the expected reward is lowered to that of other widely-available investment opportunities.
- ForHackernews 4y agoThey've just re-invented interest.
- Doxin 4y agoIt creates a system where money makes money. It's hardly surprising if that leads to the richest people making the most money. The result won't be more people joining in until the expected reward is low enough, The result will be that a few rich people will join in with enough ETH to push the reward down. There's probably be a bunch of small-time investors doing it too, but again, more ETH in is more ETH out.
- AgentME 4y agoIf the reward is pushed down to be equal to the same reward that's available to anyone through widely available investment opportunities, then it doesn't seem like it's any more of an issue than how any other investment works.
- viraptor 4y ago> It creates a system where money makes money. It preserves a system where money makes money. You need money to buy mining hardware and energy. If you had enough money you could start mining. Now if you have enough money, you can stake.
- friendzis 4y ago> the more people that stake, the smaller the reward In PoW reward is proportional to normalized "work". Reward is proportional to normalized amount staked. This very directly leads to wealth concentration.
- AgentME 4y agoIn PoW, the "work" is just how much money the miner spends on mining hardware and electricity. Both PoW and PoS are cases where people with money invest that money and get a proportional reward. PoS just cuts out the hardware and electricity waste.