Early Proof-of-Stake proposals assumed that those who have more stake in the system have a natural incentive to act in a truthful manner when validating transactions and writing blocks. It was assumed that token holders would have a natural interest in the long-term success of the network; otherwise, their stake in the system would devalue if they ... See more

Token distribution mechanisms have adopted a lot of the structures from within the traditional financial world — including vesting schedules and vesting cliffs — which have resulted in some unintended consequences like adverse price action as tokens vest; and the inability of holders with large economic interests in a protocol to exercise governanc... See more