Theoretically it could help but I strongly doubt POS is going to work at scale
The bigger the staking return premium, the greater the influx of debt-based capital into staking.
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In the long run, staking return cannot be larger than the risk-free rate as money is a non-productive asset & staking a non-productive activity, so return cannot be perpetually above the returns given by productive assets. It is simply not sustainable.https://twitter.com/hugohanoi/status/1021918438678122496 …
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The subsequent transition from non-debt-based staking to debt-based staking will revert reservation demand back to its initial state, prior to PoS rollout.
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As more debt are taken on, people will become less & less incentivized to hold on to their stake. Reservation demand then will come purely from how good the PoS coin is as a Store-of-Value (not likely to be good), not from the requirement for staking.
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This thread gives a good summary of what I’ve written on the topic. From the engineering perspective, PoS is unlikely to work / offer any real benefit over PoW.
Let me try to unpack this.
Money is not equity, period.
When you park capital in a non-productive asset, it is OUT of the system completely. Decommissioned.
The non-productive asset value can only rise if it piggybacks on the success of productive assets.