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Proof of stake is wildly anti-egalitarian: very literally, the rich get richer.
by JulianMorrison 13y ago
Proof of stake is wildly anti-egalitarian: very literally, the rich get richer.
- pjc50 13y agoExplain? Surely stake out == stake in, or something is very wrong with your proof of stake?
- JulianMorrison 13y agoProof of stake means: your chance of mining coins is derived from how big a Scrooge McDuck style money pool you already have. Merely for owning that money, Mr McDuck gets more money.
- olalonde 13y agoTo a certain extent, the same is true of POW as rich people can afford more hashing power.
- bryanlarsen 13y agoIn other words, it works like interest. In a properly functioning monetary system, interest and inflation are fairly similar, so even though the number of coins in McDuck's pile is getting bigger, what can be bought with that pile stays relatively constant.
- wpietri 13y agoHow is that like interest? Interest is rent on money. Cash in the mattress doesn't get interest. In a properly functioning monetary system, interest is above inflation.
- mithras 13y agoJust as interest in the conventional economic system is wildly anti-egalitarian: very literally, the rich get richer.
- JulianMorrison 13y agoAgreed but a difference is that to profit by interest, you generally have to invest, take risks, and put the money to work.
- bmm6o 13y agoAs opposed to proof-of-work, where the people investing in mining rigs get richer.