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> That's exactly what happens here because new coins minted for stakers have any value only because new investors purchase the currency and prop up its price O

> That's exactly what happens here because new coins minted for stakers have any value only because new investors purchase the currency and prop up its price One could design a "staking" system that is directly reliant on other people's money coming in for your payout to happen. This is not what is happening here. Staking as done by this protocols itself never promised you anything but a yield in the crypto currency itself. Maybe you think crypto in general is a ponzi scheme because people only want to sell to new entrants for a profit, but that's a different issue (not not necessarily true - it also works with a fixed set of people you keep wanting to gamble).

scotty79 4y ago
> Staking as done by this protocols itself never promised you anything but a yield in the crypto currency itself. That's a fixed percentage promise. There's relly no difference if it's expressed in crypto coins or in entries in the database of a software system of ponzi schemer. If you have a fledgeling crypto on its ride up, it's not only fueled by new investors but sustained by new investors. If the coins are minted at will the supply will eventually exceed the demand and the coin will start loosing its value. And then the inevitable crash to the bottom happens. It's crypto equivalent of hyperinflation of normal currencies that happens when money supply exceeds demand for money associated with economic development. > Maybe you think crypto in general is a ponzi scheme I don't. I just feel like promising fixed, large percentage gains makes something Ponzi scheme. Something like Bitcoin or Ethereum that have tight control on coin supply are not ponzi schemes. Those are just new type of commodity. Mildly useful, but scarce, unique and easily transferrable and divisible.
- ahoya 4y ago
  Promising fixed, large percentage gains is not the definition of a Ponzi scheme. Also Ether in does not do this to begin with.

scotty79 4y ago

> Staking as done by this protocols itself never promised you anything but a yield in the crypto currency itself. That's a fixed percentage promise. There's relly no difference if it's expressed in crypto coins or in entries in the database of a software system of ponzi schemer. If you have a fledgeling crypto on its ride up, it's not only fueled by new investors but sustained by new investors. If the coins are minted at will the supply will eventually exceed the demand and the coin will start loosing its value. And then the inevitable crash to the bottom happens. It's crypto equivalent of hyperinflation of normal currencies that happens when money supply exceeds demand for money associated with economic development. > Maybe you think crypto in general is a ponzi scheme I don't. I just feel like promising fixed, large percentage gains makes something Ponzi scheme. Something like Bitcoin or Ethereum that have tight control on coin supply are not ponzi schemes. Those are just new type of commodity. Mildly useful, but scarce, unique and easily transferrable and divisible.

ahoya 4y ago
Promising fixed, large percentage gains is not the definition of a Ponzi scheme. Also Ether in does not do this to begin with.