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RE: The Power of Rewarding Authors With Second Layer Tokenization

in LeoFinance4 years ago

The most important reason why the HIVE rewards must remain is keeping the ownership of Hive Power becoming too centralized. That would undermine the credibility of the entire platform and actually put all of everyone's funds in danger. The tendency towards centralization is the Achilles' Heel of Delegated Proof-of-Stake. Because DPoS chains are cheap to run, a small number of top (consensus) witnesses keep potentially getting richer and more powerful until all power is irrevocably concentrated into their hands. PoW chains do not suffer from that problem because the right to sign a block is bought with a high cost of energy and capital, which forces the blockproducers (miners) to constantly sell their coins.

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