
Staking Rewards on Coinbase - illumin8
https://blog.coinbase.com/introducing-staking-rewards-on-coinbase-c394392a70eb
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clarkmoody
Proof-of-stake cryptocurrencies face systemic risk from their centralization
on exchanges. Users are economically lured to store their PoS coins on
exchanges, since they receive X% returns. The exchange then gains an outsized
portion of the supply of such coins. Finally, the exchange -- or a few
exchanges in a cartel arrangement -- are able to muster enough stake to change
the rules of the coin to suit the whims of the exchange at the expense of
network security, decentralization, etc.

For instance, if regulators lean on the exchanges to require some form of KYC
embedded in the coins themselves, they are able to oblige by suspending
withdrawals until the new rules of the network are adopted through the PoS
governance mechanism, voted on by the majority stake held by the exchange
under regulatory scrutiny.

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g82918
I didn't know what Tezos was so for others:

> Tezos is a cryptocurrency and decentralized computing platform. Its features
> include proof of stake consensus, formal verification (which lets developers
> verify the correctness of their code), and the ability to let stakeholders
> vote on changes to the protocol. Tezos's block creation process is called
> "baking" — Tezos holders who stake their tokens can receive Tezos tokens as
> a reward for creating and verifying blocks.

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illumin8
I tried to title this "Introducing Staking Rewards on Coinbase," but
"Introducing" was removed automatically from the submission.

