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Tokenomics

Power and seigniorage in proof of stake

Mar 2, 2020 ⋅  6 min read

PoS may provide theoretical advantages over PoW regarding security, efficiency, and decentralization (although detractors would argue theory means nothing until it becomes practice) however it may also bring adverse consequences for power and wealth distribution. This is especially true for PoS blockchains with tightly coupled on-chain governance. The most significant of these consequences is that PoS blockchains will forever be burdened by their initial token distribution.

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Ryan Watkins was a Senior Research Analyst at Messari. Previously, he worked at Moelis & Company as an Investment Banking Analyst where he worked on deals in the technology, telecom, and fintech sectors. Ryan graduated Magna Cum Laude from the Gabelli School of Business at Fordham University.

About the author

Ryan Watkins was a Senior Research Analyst at Messari. Previously, he worked at Moelis & Company as an Investment Banking Analyst where he worked on deals in the technology, telecom, and fintech sectors. Ryan graduated Magna Cum Laude from the Gabelli School of Business at Fordham University.