Re:Ethereum will use around 99.95% less energy post merge
by hajile on Tuesday May 18, 2021 @01:02PM
(#27197658)
Don't forget the billionaire problem either.
Proof of Stake as setup gives all the power to people/companies who have large amounts of liquid assets.
Consider Amazon, they keep a rolling window of cash in-between when an item is sold and when the seller gets paid. This effectively gives them billions in interest-free capital. If this were Etherium, it would translate into huge amounts of voting power.
Likewise, if/when people deposit their etherium into banks, those banks can then leverage that "free" capital to grab huge voting stakes that wouldn't otherwise exist (because no person living paycheck to paycheck has the equivalent of 100k sitting around).
This leverage simply does not exist with proof of work.
Proof of Stake as setup gives all the power to people/companies who have large amounts of liquid assets.
Consider Amazon, they keep a rolling window of cash in-between when an item is sold and when the seller gets paid. This effectively gives them billions in interest-free capital. If this were Etherium, it would translate into huge amounts of voting power.
Likewise, if/when people deposit their etherium into banks, those banks can then leverage that "free" capital to grab huge voting stakes that wouldn't otherwise exist (because no person living paycheck to paycheck has the equivalent of 100k sitting around).
This leverage simply does not exist with proof of work.