Token economics: rich get richer


#1

A known concern for POS systems is the richer get richer effect. Somehow this feels counterintuitive for a decentralized network to foster centralization. Are there any thoughts how the node incentives could be restricted, e.g. by using a log10 for block rewards?
Would love to hear your thoughts on that.


#2

@sepia, one can argue POW is also a system where rich gets richer (i.e. the more money you have the more hash power you can accumulate and collect more rewards). Currently there are no plans to use a restricted incentive such as log10 for rewards.

This is a similar approach to quadratic voting. Would be interesting to see how quadratic voting will apply to governance protocols (compared to regular token weighted voting)