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In a future where #Ethereum switches to Proof of Stake, top exchanges by volume will stake user deposits.
They may even offer stake rewards greater than normal just to buy influence over the network and more volume.
Users will use the exchanges that pay them. $ETH #Bitcoin
$BTC
They may even offer stake rewards greater than normal just to buy influence over the network and more volume.
Users will use the exchanges that pay them. $ETH #Bitcoin
$BTC
2/ Mining centralization isn't great but can be mitigated and will be decentralized further as more competition enters the market.
I don't see how giving exchanges more power over the network is a benefit. Currently exchanges are the top ETH holders. ICOs are up there too.
I don't see how giving exchanges more power over the network is a benefit. Currently exchanges are the top ETH holders. ICOs are up there too.
3/ A switch to PoS just centralizes control even further giving Vitalik, exchanges, and ICOs way more power.
Meanwhile we don't even know key specifics yet like what the supply rate will be or how much $ETH you will need to stake. Both will inevitably be higher than expected.
Meanwhile we don't even know key specifics yet like what the supply rate will be or how much $ETH you will need to stake. Both will inevitably be higher than expected.
4/ And that's disregarding the fact that PoS security without centralized checkpoints has never been proven at any meaningful level of scale or the fact that PoS networks are inherently less permissionless than PoW networks.
5/ That being said, I'd love to be proven wrong.
All I'm saying is that the move to PoS is way more risky than the simple 'upgrade' it is being sold as. A lot could go wrong.
This is unchartered waters.
All I'm saying is that the move to PoS is way more risky than the simple 'upgrade' it is being sold as. A lot could go wrong.
This is unchartered waters.
6/ "For example, our vision is to give customers the ability to participate in services like staking and protocol voting that are distinct to crypto."
https://blog.gdax.com/announcing-coinbase-pro-6773bc3bf99c
https://blog.gdax.com/announcing-coinbase-pro-6773bc3bf99c
7/ Binance is currently staking user deposits of $STRAT and apparently no distribution to users. They also stake users' NEO but for that they pay out proportional rewards. This will become the norm for all PoS chains. https://twitter.com/ThisIsNuse/status/1039442905679708160
8/ http://Gate.io also announced they will be staking user deposits of tezos:
https://www.gate.io/article/16626
https://www.gate.io/article/16626
9/ You can't blame the users. You can't blame the exchanges. Both parties are acting in their own best interests.
Blame the flawed incentives of the protocols in question. https://twitter.com/matt_odell/status/910845757896486917
Blame the flawed incentives of the protocols in question. https://twitter.com/matt_odell/status/910845757896486917
10/ Binance has been consistently increasing the number of PoS chains they support... https://twitter.com/binance/status/1059382005324890113?s=19
11/ "Coinbase has been storing crypto for institutional hedge fund clients since 2017, but the new so-called “staking” services will allow those investors to tap into rewards offered by certain types of digital assets running on proof-of-stake networks." https://www.theblockcrypto.com/2019/03/28/coinbase-launches-a-staking-service-for-institutional-clients-starting-with-tezos/
12/ "The company has now also decided to add staking support for XLM, and will begin distributing rewards to all users who stake XLM tokens...Binance estimates the September pay-out will be 'worth 10 to 12 months of typical monthly rewards.'" https://www.theblockcrypto.com/tiny/binance-unknowingly-generates-775k-from-staking-stellar-will-share-proceeds-with-community/
13/ Binance just added staking support for a 6th PoS chain. Like XLM before it, early stakers will receive bonus rewards... https://twitter.com/binance/status/1153596096259612672?s=19
15/ Binance announced trx staking earlier today. They quickly became the largest validator and it's not even close...
Announcement: https://www.binance.com/en/support/articles/360034222592
Data: https://tronscan.org/#/sr/representatives
h/t @bennd77 @Bitcoin_Vending
Announcement: https://www.binance.com/en/support/articles/360034222592
Data: https://tronscan.org/#/sr/representatives
h/t @bennd77 @Bitcoin_Vending
16/ lol I’m going to stop adding to this thread soon I think it’s become pretty obvious that Proof of Stake validation will centralize among exchanges and other custodians 
https://twitter.com/coinbase/status/1192154927813943296?s=21
https://twitter.com/coinbase/status/1192154927813943296?s=21
17/ “They may even offer stake rewards greater than normal just to buy influence over the network and more volume.”
As predicted Binance just undercut every noncustodial tezos stake pool - highest “return” you can get on staked tezos is now binance.
https://twitter.com/binance/status/1201849033850945541?s=21 https://twitter.com/binance/status/1201849033850945541
As predicted Binance just undercut every noncustodial tezos stake pool - highest “return” you can get on staked tezos is now binance.
https://twitter.com/binance/status/1201849033850945541?s=21 https://twitter.com/binance/status/1201849033850945541
19/ Turns out they agreed with me the whole time. It was by design. https://twitter.com/CoinDesk/status/1272893349905805314
