sid
@siddani
While establishing a U.S. Crypto Strategic Reserve might legitimize crypto assets, doesn’t government ownership fundamentally undermine the decentralized ethos that drew us to crypto in the first place? Curious to hear how the community sees this potential paradox.
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Cassie Heart
@cassie
Arguably, it depends on the asset. Bitcoin's decentralization is a function of miners competing for block rewards, not accrued holdings. even still, microstrategy (the largest individual holder of BTC) is in the low single digit percentage of total bitcoin and it's unlikely another will outcompete them. There is concern of price action, which does have second order effects with miners, but bitcoin has larger threats to miner abandonment moving forward even without this consideration. 1/
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Cassie Heart
@cassie
Ethereum and Solana maintain consensus via staked assets, in other words, machines on the network are pledging a quantity of the asset (based on whatever rules the protocol has in place) as part of the process. In return, they receive a reward in new tokens. If they cheat, fail, or otherwise misbehave, there is some kind of penalty, typically referred to as slashing. In terms of decentralization, most proof of stake protocols have around 2/3 majority requirement for consensus, so you'd have to control 66.7% of all staked tokens to cheat and get away with it. That being said... it's probably better to not think too hard about the fact that over 50% of all staked eth is split between Lido and Coinbase. 2/
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shazow
@shazow.eth
Not to confuse things further, but Solana does not have staking penalties implemented for misbehaving. It's a "we'll solve it in discord" situation. ðŸ«
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Cassie Heart
@cassie
Yeah... I was trying to avoid the "all of this is actually really just a group of people saying yes to these rules and it can definitely change" issue that plagues proof of stake especially.
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