“A Gassy PoS” A micro-story by John Pitts One day a search…

“A Gassy PoS”
A micro-story
by John Pitts

One day a search engine innovator led by Larry and Sergey decided to IPO using the Ethereum POS staking methodolgy!

Imagine google IPOs its shares in 2004 which give each owner the full rights to a share of all Google’s profits. To each according to his share percentage.

But Google’s search engine isn’t built yet. That requires capital. But the sellers of shares keep all the sales proceeds for themselves personally— like any share sale post-IPO. But the company never receives any capital from the IPO.

So…
when it comes time for Google to create the search engine, Larry Page asks each shareholder, whether Barney Rubble has just barely a single small stake or whether Ethereum Foundation…errrr… I mean Larry Page and Sergey Brin... have 80% share “stake”. Larry and Sergey can decide to put up any amount they see fit, to build their search engine server. Let’s say they are generous and put up $10mm. Barney Rubble also can decide how much, so he puts up one server machine for $10,000.

Now Google tries to scale the search engine for the world. Larry & Sergey’s server buys the network some time, by having sufficient scale to handle the traffic. But Barney’s node begins struggling to keep up.
But Barney is a valued respected fully “staked” member of the club and it would be wrong to eliminate the weak despite the fact that Barney’s node needs to keep up with Larry & Sergey’s (“the Duo”) node for consensus. Things slow down, but all is fair. The duo could put it up for vote to exclude Barney’s node for being too skimpy, so they respectfully first ask Barney to spend $10mm on proper node servers to keep up, despite Barney only having 0.1% of the stake of Ethereum Foundation… errrrr I mean Larry & Sergey. Barney isn’t able to be anywhere close to profitable if he meets this request and he protests.

it comes to a vote. The Duo votes their 80% stake in favor of the new rule that all stakers MUST spend $10mm on their capital search equipment. Barney and other small stakers like Sam Shale and Mr Slate vote against this. Duo easily wins.

As network traffic grows, speeds slow down and fees grow in size to stay high in the txn processing que— especially for ether token sales… err I mean GOOG share sales… during the frequent but short price spikes! Barney can never seem to get HIS shares done during the price spikes but only after the price comes down and stabilizes. The Duo are always able to overpay for their shares to get sold at the top of the price spikes— ahead of Barney’s similarly timed share sale! But traffic slows more and it becomes obvious stakeholders need another “capital call” to double the size of the two remaining nodes: one owned by Larry Page for 60% after he bought out small stakers and Sergey Brin at 40%. But Larry can put up $10mm and gets a 60% stake of search revenues. Sergey must also spend $10mm in capital but only gets 49% of revenues. Hmmmm. So Sergey decides he’d rather just raise txn fees to keep traffic lower, rather than fork over $10mm in capital. But what does Larry say about this?

Larry would be happy raising fees AND spending $10mm in capital so long as Sergey does the same. But if Larry can only raise fees just high enough to make Sergey break even, then Larry can probably get Sergey to sell his stake on the cheap. So they both agree to Larry’s price hike bc also Larry has 60% voting consensus anyway and therefor controls the devs.

Sergey is drunk one day and agrees bc everyone says Google can stay “decentralized” if he stays. But Sergey isn’t making money anymore so sells his stake— to Larry who is still profitable.

From here, Larry can just increase txn fees since number go up— no need to waste money scaling. Larry on paper gets very rich as number go up high and he just trickles out tiny amounts of shares. Nobody who buys the shares dates stake them or they’d have to put up $10mm in capital to keep their Node handling traffic. No traffic, no ability to sell number go up when next spike happen.

Number keep going up, on tiny increasingly illiquid volume, while only Larry can pay the massive fees to sell the spikes when the next sucker.. err Ray Dalio…errr… Elon …. errr… Microstrategy… errr Ashton errr WHALE-buyer falls off the turnip truck. Number keep going up— exclusive club, punky NFTs better than blue Dorsel-fin stars.

Now you know basically how Ethereum… errrr Solana… errr PoS works!

Go look it up in SLictionary & see for yourself.

The End!

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