Decentralising Steem: Improving DPOS & Worker Proposals. Comments on @jesta’s EOS blog @ Greymass

Thanks to @surfyogi for showing me this great blog that was apparently written by @jesta and which critiques the DPOS algorithm that is used by both Steem and EOS. In it he highlights how DPOS fundamentally creates a centralisation of power since the block producers (witnesses on Steem) constantly receive large amounts of tokens and can hold themselves in that position. After not very long they dominate the entire token supply, which is totally counter to the principle of decentralisation.

This is actually part of why anyone who holds a lot of tokens needs to be potentially thinking of ways to distribute those tokens, since the tokens both represent a means of decentralisation and also a marketing tool that can ultimately increase the value of the tokens, period. In any case, @jesta suggests the use of a worker proposal system to counter balance the inflation that goes to the top block producers, but this requires the block producers to not be able to receive payouts from the worker proposal system!

Check out his blog and listen to my commentary in the video here too:

https://blog.greymass.com/eos/@greymass/inflation-centralization-and-dpos

Wishing you well,

Ura Soul