Part 8/17:
Centralization risk: with large stakes, powerful actors can exert undue influence or collude.
Stake capture (cantillon effect): wealthy entities can dominate governance, making the system akin to equity—more like a corporation than a permissionless network.
Pete and Lane discuss that validators holding their stake can collude or be compromised, leading to stake centralization, fundamentally conflicting with Bitcoin's ethos of maximum decentralization.
Lane emphasizes that proof of work inherently fosters decentralization—anyone with electricity and hardware can participate—whereas proof of stake's initial distribution and stake accumulation are often concentrated, making it more susceptible to oligopolies or cartel control.