Dovey Wan

Dovey Wan posted the tweets below here.

Dovey Wan

After talking with a few EOS master node operators, apart from onchain governance which may trigger endless debate, I still can’t get my head around the PoS family in general. Please let me know if I’m missing anything or there is better design of PoS I’m not knowing of.

1. PoS is by seniorage/inheritance. Early bag holders or block producers will have infinite amount of advantage over others, and in order to keep them loyal an immense inflation schedule seems inevitable.

• Rebuttal: Proof of stake doesn't necessarily mean that your votes are weighted by stake. Having a constant weight encourages stakers to split up their stake and deploy lots of validators.

1. Exchange and wallet have unfair advantage in accessing to stake. Average coin holders are indifferent in all the governance/politics matters hence rely on which channel can offer the easiest way of staking. Most of big bag holders are not sophisticated enough to run validator

• Rebuttal: This is kind of hard to parse, but it sounds like the previous concern again, e.g. exchanges taking all the money they're holding and using it to stake the network to make more money. People with lots of cash can (and do!) own big parts of the network even in proof-of-work networks.

1. The liquidity being locked/security deposit need to accrue decent value to become a stake. Once it become a stake level commitment, its an opportunity cost of giving up arbitraging gain, which is similar to a floating look back option.

• Rebuttal: OK, so that just means you need to design the economics of your token properly, not that PoS is bad or broken.

1. If the price of the stake is more volatile, there is more potential gain of the option. Together with opportunity cost of lending interest, massive inflation is inevitable for most staking system hence dilute the value (as least perceptively)

• Rebuttal: You can't short a token, so you can't trade very well on the volatility. I don't understand the argument as to why there would necessarily be inflation. Again, this sounds like a problem for the design of the economics of the token, not for PoS.

1. Nowadays given more VCs participating in the space, VCs naturally ask for certain ownership. This ownership concentration will be a governance and trust issue down the road for the entire PoS network

• Rebuttal: That's a business problem, not a PoS problem. Corporations are the best technology we've got for governance, and they do a great job.