I have two issues with PoS that I've never seen addressed?
(1) Isn't it Plutocratic? PoW can be too in that capital and energy costs money, but PoS seems to directly reward the largest stakeholders with more stake.
(2) Removing money from circulation is not free. It reduces monetary velocity and has other detrimental effects on the currency's economic system.
Comments
I have two issues with PoS that I've never seen addressed?
(1) Isn't it Plutocratic? PoW can be too in that capital and energy costs money, but PoS seems to directly reward the largest stakeholders with more stake.
(2) Removing money from circulation is not free. It reduces monetary velocity and has other detrimental effects on the currency's economic system.
1. That's a process question. It's quite possible to rotate stakeholders, audit stakeholders, and challenge stakeholders.
2. If a network can hold back some currency, but actually scale to meet global transactional demand, it'll be better in this regard anyways.