Non-linear stake transformation describes a method where the influence or weight derived from a staked amount in a decentralized network does not scale directly proportionally to the quantity of the stake. Instead, a mathematical function alters this relationship, often to reduce the marginal benefit of larger stakes. This technique aims to prevent excessive centralization of power among a few large holders. It contributes to a more equitable distribution of control within a protocol.
Context
This concept is frequently discussed in the design of proof-of-stake systems and decentralized governance models, with news often covering proposals to implement such transformations to improve network decentralization. The goal is to ensure that smaller stakeholders retain meaningful influence and that the system resists attacks from entities with vast capital. Debates center on finding the optimal transformation function to balance security and fairness.
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