Post
Topic
Board Development & Technical Discussion
Merits 3 from 1 user
Re: [Megathread] The long-known PoW vs. PoS debate
by
LegendaryK
on 01/03/2022, 09:20:32 UTC
⭐ Merited by Welsh (3)
I could, but my point is PoS give lots of power to centralized exchange. Not only they control user fund, they could use it to manipulate the network or earn more profit (by staking the coin) while user only receive none/small percentage of the profit.

Cardano has countered that concern with the following.
https://www.coinbase.com/cloud/discover/solutions/cardano-stake-pledge-margin

Quote
Cardano has two protocol‐set parameters to prevent centralization. These control how much ADA — Cardano’s native cryptocurrency — and how many pools each stakepool can control. They are the k parameter and the a0 parameter.

The Saturation Parameter (k) controls the number of stake pools in the network, and increases decentralization by creating incentives to create more stake pools.

The parameter determines how much stake in a single pool will earn rewards. The higher the k parameter, the lower the maximum stake cap per pool. Any stake above the maximum does not qualify for additional rewards.