Re: Decentralization idea: Encourage mining network distribution among pools

- Decreasing chances for small pools to create blocks and attract more mining power to grow. With no reward on mid-size pools all miners should prefer to mine on big pools with better expectations for return on investment, rather than supporting new pools.

I stopped reading here. This isn't correct. Expected return is not increased by using a larger pool. Mining is not a race, it's a random lottery.

But I understood that if a pool has more people it has more chances of winning the lottery, is this incorrect?

Yes, but the winnings are split proportionally among those extra people.

That said, with a larger pool it's less likely that your block reward will be orphaned by another block that manages to propagate to the network faster than yours. But that's not a big effect right now in terms of profitability because fees aren't very important - a rational miner will keep their blocks small to keep that orphan risk down.