Evolution of Shares in a Proof-of-Stake Cryptocurrency - Archive ouverte HAL Access content directly
Preprints, Working Papers, ... Year :

Evolution of Shares in a Proof-of-Stake Cryptocurrency

(1) ,
1

Abstract

Do the rich always get richer by investing in a cryptocurrency for which new coins are issued according to a Proof-of-Stake (PoS) protocol? We answer this question in the negative: Without trading, the investor shares in the cryptocurrency are martingales that converge to a well-defined limiting distribution, hence are stable in the long run. This result is robust to allowing trading when investors are risk-neutral. Then, investors have no incentive to accumulate coins and gamble on the PoS protocol, but weakly prefer not to trade.
Not file

Dates and versions

hal-02896092 , version 1 (10-07-2020)

Identifiers

Cite

Ioanid Rosu, Fahad Saleh. Evolution of Shares in a Proof-of-Stake Cryptocurrency. 2020. ⟨hal-02896092⟩

Collections

HEC CNRS
21 View
0 Download

Altmetric

Share

Gmail Facebook Twitter LinkedIn More