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If I understand correctly that by "burn coins to the penalty", you mean that miners will create fake transactions to themselves? Thus the cost of the penalty is being charged to the miner who can't generate fees from himself.

But that is incorrect rationale, because your and my entire point has been that the Tragedy of the Commons is due to market demand for scaling, then the block size is unbounded. Your (and my) entire point was that without any bound, then transaction fees would trend towards 0 and thus an oligarchy MUST form because verification is not only not free, but more saliently verification is less profitable any miner that has less hashrate than the other miner who has the most hashrate (since all miners have to verify the entire block chain and thus verification costs are the same for all full nodes and have to amortized over income from blocks).

Thus you've accomplished nothing in terms of the fact that verification will centralize.

I explained in this thread starting from first principles as to why the abstract Byzantine Generals Problem can't be solved decentralized. Period!

Thus that guarantees that it doesn't matter how you try to obfuscate this reality in numerous technobabble. smooth is incorrect to question whether Bitcoin is directly correlated to the BGP. I could explain that too, but I grow weary of foruming.

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