How to stop the push to centralization?


#1

Hi folks,
I’m here because I love that the Cardano team has decided to wrestle with these difficult issues in such a transparent and peer-reviewed way. A nagging issue I have with the crypto ecosystem is that PoW encourages centralization through people using expensive ASICs and uses a lot of electricity. This is what first got me in to PoS, but it seems like PoS simply will also just reward those with large amounts of ADA and “the rich will get richer”. This will promote centralization through people with ADA being able to get more and more ADA for themselves.

Is this a concern to the Cardano team, and is there any attention being put in to how to reward decentralization? Any papers or links?


#2

I believe they adress this in the ouroboros white paper but in not sure, it’s my understanding that they are still developing the reward structure to avoid having such scenarios.


#3

Correct, Charles has stated they are aware of these scenarios and are trying to find a balanced solution.