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You're confused, in a ponzi earlier investors are paid from the investments of future investors. That's not how PoS works. In Ethereum, everyone is diluted to p
by mgraczyk 4y ago
You're confused, in a ponzi earlier investors are paid from the investments of future investors. That's not how PoS works. In Ethereum, everyone is diluted to pay stakers and the time of their investment does not matter.
- shabbatt 4y ago> You're confused, in a ponzi earlier investors are paid from the investments of future investors. so you mean like pre-mine token sales? wait aren't those securities because there is an expectation of returns from the work of others? what you write here could be used against you, consult your lawyer before you admit anything!
- mightypirate 4y ago
- mgraczyk 4y agoA pre-mine might make it a security, but it's basically the opposite of a ponzi. Not everything is a ponzi. I think you're just confusing different financial constructs with one another
- shabbatt 4y agoIt's worse than ponzi, its securities fraud.
- RC_ITR 4y agoYou're confused. In The Ethereum Ponzi, early token holders 'stake' their tokens and are paid by future transactors. But here's the funny thing that no-one gets: all assets are a ponzi scheme (stocks are only worth something now because future rubes will buy them for more later), what makes bad ponzi schemes is when the underlying asset that everyone is speculating on doesn't do anything useful.
- mgraczyk 4y agoBut no, that's not the same. If the owners of a stock received a fee when somebody used the company's product, that wouldn't be a "ponzi". It lacks the key element that earlier investors are paid via the investments of future investors. That's just not what happens on Ethereum.
- everfree 4y agoEdit: Was replying to comments too fast, misread what I was replying to.
- mgraczyk 4y agoThe people paying a fee are not investors. This is like saying the grocery store is a ponzi because customers pay the shop owner, who was an early investor. The people paying a fee do not expect to make a profit off of holding ethereum. (Some of them do, but that's a coincidence in the same way that a shop owner might shop at their own store).
- RC_ITR 4y ago> It lacks the key element that earlier investors are paid via the investments of future investor. Are you under the impression that you can buy Ethereum without paying transaction fees to stakers?
- mgraczyk 4y agoI am, because it's true. For example I own a lot of Ethereum and didn't pay any transaction fees to obtain it. Most ETH transactions work this way because they happen on centralized exchanges.
- RC_ITR 4y ago>Most ETH transactions work this way because they happen on centralized exchanges. Well then what does Ethereum do actually? And why exactly can't those centralized transactions be denominated in "Coinbase points" without all the crazy "Proof-of" code?
- Terr_ 4y ago> in a ponzi earlier investors are paid from the investments of future investors. Also, a Ponzi scheme requires fraud, where the earlier investors are being lied-to about where the money comes from in order to paint a false financial picture of the company. Not directly related to your point, but I wanted to put that out there since it's a pet-peeve of mine that "Ponzi" gets frequently misused as a label for anything the speaker thinks is unsustainable.
- miohtama 4y agoBy the OP definition, pension funds would be ponzis.