The Limits of Crypto-Economic Governance (Response to Vitalik's Critique of DPOS)
Vitalik recently made claims that Delegated Proof of Stake (DPOS) results in rule by plutocracy (government by the wealthy). He then goes on to argue for governance by cryptoeconomics, the use of economic incentives and cryptography to govern.
https://medium.com/@bytemaster/the-limits-of-crypto-economic-governance-9362b8d1d5aa
Most points are very weak. But this is overall what he's pushing through the Eth maximist community:
Votes being aligned with Stake size: "The flaw in all of this, of course, is that the average voter has only a very small chance of impacting which delegates get selected"
Bribes for Votes: "The delegate slot gives a reward of $100 per period, and candidates promise to share some portion of that as a bribe, equally split among all of their voters." "Now, some candidates will want to secure their position by sharing more; by sharing 2%, you are likely to get twice as many votes as those that share 1%"
Cartels and DPOS in Bitshares: "But it gets worse. At this point, there’s an incentive for delegates to form alliances (aka political parties, aka cartels)" "pooling votes"
No conversations between US EOS community and EOS China: "Since the EOS.IO official Twitter account was founded, there has never been any interaction with the mainland Chinese EOS community" * Block.One has offices in HK. Not sure about contact with mainland.
Identity Issues: "If they get removed from the delegate position via a hard fork, they can simply restart the attack again with a different identity." * Identity verification mechanisms and @account fingerprint solves this
Cryptonomics (economic incentives) VS. EOS Governance "Cryptoeconomics is about trying to reduce social trust assumptions"
Then he rants about Casper lol
https://www.reddit.com/r/eos/comments/888zk5/list_of_vitaliks_issue_with_dpos_governance_lets/
👍🏼
I honestly believe the transparency in the crypto-world and blockchain is what makes it stand out above all other financial or economic systems.
I believe EOS-IO is promising future for us all.
Lets hope the devs dont abandon eos like they did steem.
希望不要被少数人控制了
This really goes to the essence of the world we live in, both physical and digital. We are seeing digital domains, ones that are run by greed, scarcity, and feat mirroring the physical. We need to transition away from this or else we risk simply creating new slave holders.
Cryptocurrency and blockchain offers the ability to change the course that humanity was on the last 100+ years (actually longer than that but I will stick to the banksters).
The challenge is not in the technology but in the changing of people. If we behave like we always did, nothing changes. The development of the gun over the bow/arrow simply allowed us to kill in greater numbers. The fact that humans were on track to keep killing did not change at all.
If blockchain is nothing more than a digital version of the US Congress, then we accomplished nothing.
Keep up the good work @dan.
The questions comes how society will change when we are moving to 10 billion humans. Can you control that or will it become madness that is a good questions. How can you convert people into good selfless people.
The problem with big groups of people is usually stupidity can spread like wildfire. Since intelligent ideas are more complex. So you sort of need to spoon feed the mainstream masses great ideas. And you also have so much capital now in the world that runs the show so will be interesting how the future will look like.
All that you say is spot on. There are going to be questions going forward. How do people adapt and adjust? Many resist change....there will be some who do not get it. Plus, this is a process that is not going to happen in a year or two. We are going to see this evolve over decades.
One thing about the masses, once the trend starts in a particular direction, they are easily led. This is what the present system did..lead them around by the nose. However, if there is a strong group of people who start the trend in the opposite direction, most will follow suit.
There will always be those who exhibit bad behavior while refusing to conform. However, most will fit in with the norm of society.
We see this in riots...group mentality ....people do things in that situation they would never do on their own.
Have the prevailing mindset of doing good for others, and the masses should follow.
...and in the end we come to facts like...thinking with your own head and not listening to the crowd, do your own research.
Human nature is to exploit.
Hi @dan.
RIP Ethereum, let's all have a silent moment together!^^
VIDEO - Is This The End For Ethereum (ETH)?
"Hi, I'm Dan. EOS is coming. It's over for Steemit. k thanks bye now"
Not until I'm here it's not. >:D
Good rebuttal @dan to Vitalik concerns....Look for the EOS wallet launch!
Hey Dan,
I also saw you mention that you were going to make a steemit like competitor based upon it and that you've found ways to address issues with steemit.
I would like to be able to get in an use such a project as early as possible. If you have anything I need to do in order to insure that please let me know.
I've been signed up to the eos.io newsletter for some time. My email is dwinblood at gmail.
Keep up the good work, I believe in the directions you are heading and you have my support. Meager, but it is still there.
Some people thinks he wanted to FUD. I think his goal was not to FUD but to inform. With the popularity of dPOS blockchains it's important to know all the downsides. It's easy to think that it's the Holy Grail because of the high Transaction Per Seconds and fast confirmations but very few people know all the technicalities to understand the traps of such a consensus mechanism. I believe Vitalik is one of the most brilliant people (and humble!) in the crypto space so I value his input and I think he should not be taken lightly. Just my opinion.
"The vast majority of people have good intentions" - I would hope you're right about this @dan!