The gubbermint: -Do not mine block #13123313123123, that is a federal order.
The miners: -Sir yes sir!
You mean, "The mining pool: Yes sir!". As far as the miners are concerned, they're incentivized to mine on the most profitable pool, which is the one that censors no transaction.
They only need to send the order to the biggest 3 or 4 pools and there goes your decentralized mining.
The top 4 pools as we speak mine about 75% of the blocks. This means that even if 4 pools started censoring transactions based on federal orders, there would still be 1 in 4 blocks that would ignore all the censorship bullshit. And at this point, the pro-censorship pools would have just accomplished loss without censoring anything.
True, however… Just like how they have been doing it with mixers, they’ll hunt down them pools which don’t comply.
Where are they gonna host these miners their website then?
On an onion domain? Good luck. They would be lucky if they could get 1% of the total hash rate then.