Thread by @0xStef

1/ Why does the OA have so many $PLS tokens?

Continue reading the thread below.👇

2/ The OA will likely to own 90% of the initial supply. It surprisingly entered at the end of the Pulsechain sacrifice in July 2021, making some sacrificers quite bitter. Maybe they did not understand what sacrificing meant...

#hexpectations?

https://twitter.com/0xStef/status/1414194038857666561

3/ Such ownership level is nonetheless important for Proof-of-Stake chains where the ability to produce blocks directly correlates to the share of the total supply. "The only reason why blockchain exist is censorship resistance... otherwise just run a database" RH

#oops?

4/ Regardless of their consensus scheme, the appeal for blockchains (inefficiently distributed databases) comes from their permissionless nature. The most likely projects to thrive: to attract developers, users, and capital must be fairly censorship-resistant.

#permissionless?

5/ Inefficiency is traded off for censorship resistance, often characterized by the diversity of nodes across multiple dimensions:

- geolocation
- hardware/cloud providers
- protocol implementations & their developers

https://twitter.com/balajis/status/1334389516845555712

6/ While it's reasonable and practical to have some centralization at the inception of a new blockchain network, it's not acceptable to set yourself up for infinite control over it. I have not heard many people discuss potential decentralization paths for #PulseChain. 🤔

7/ The OA has been mostly benevolent for $HEX so far by slowly being inflated away, losing its share of the total supply, and encouraging staker adoption with a high yield. Here are a few ideas on how the OA could incentivize PLS adoption (developers, users, and capital):

8/ 🛡 Protecting the early network to ensure validator quality and consensus improvement. But over time, it's a smart play to further distribute control to more participants. PulseChain DAO? New rotation rules?

BSC is decentralizing. SLOWLY 😅
bnbchain.org/en/blog/bep131…

9/ 💸 A @gitcoin-style airdrop to the ecosystem of contributors. For example, the top 50 earners have made ~$50k (median) this past year.

gitcoin.co/leaderboard/?c…

10/ 🔥 A quarterly burn. People love to own scarce things.

11/ 🤷‍♀️ Do nothing and use the high market cap argument. We saw how this worked for HEX...

12/ The total value being deposited on a given chain is probably the best signal to measure confidence and real adoption while unique addresses and transaction volume can be gamed. So far, #Etherum wins by far the L1 game... trustlessness wins.

#data #DontTrust #Verify

13/ If Pulsechain wants to compete, fast and cheap is not enough. It will have to become highly trusted by finding a path towards trustlessness, ironically.

@StakerApp and a few other validators will soon kick off some initiatives to push in that direction. 🕊✌️