Evolution of Shares in a Proof-of-Stake Cryptocurrency

【Author】 Rosu, Ioanid; Saleh, Fahad

【Source】MANAGEMENT SCIENCE

【影响因子】6.172

【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 and, 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.

【Keywords】blockchain; cryptocurrency; asset allocation; martingale; Polya urn; Dirichlet distribution

【发表时间】2021 FEB

【收录时间】2022-01-02

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