Part 11/17:
Lane discusses how stake centralization leads to economically powerful actors exerting outsized control, reminiscent of the Cantillon Effect—the idea that those closest to the money supply—the wealthy—benefit disproportionately from inflation or network control.
In proof-of-stake:
Large stakeholders earn rewards proportional to existing wealth.
Control over the chain's governance and upgrade can be captured by the few with substantial stakes, eroding decentralization.
This power concentration is the antithesis of Bitcoin's foundational ethos.