I recently came across an argument of self-referentiality in PoS and I'm wondering what's the strongest counter-point to this idea?
In essence, the idea is that in PoS you
Similarly reduced, proof-of-stake systems work like this:
- The list of valid transactions determines who has coin.
- People with coin decide which transactions are valid.
Is PoS actually self-referential as described here? If so, is this some critical flaw in the idea? Maybe PoS in general is self-referential like this but Ouroboros isn't?