# kaal:claim:3125827-009

**Claim.** Even though proof of stake mitigates the economy of scale advantage, block production cartels can still arise in PoS systems through lotteries, through built in voting delegations, or because the stakes required to be a block producer can simply be bought.

**Type.** failure  **Support.** argued

**Holds when.**

- PoS systems that use lotteries, delegation, or purchasable stakes

**Source quote.**

> However, block production cartels may still arise due to lotteries, or the fact that voting delegations are built into the system, or the fact that the stakes needed to be a block producer may be bought

**From.** Craig Calcaterra, Wulf A. Kaal, *Secure Proof of Stake Protocol* (2018), 2.2 Soft attacks, page 8

**Cite as.** Craig Calcaterra, Wulf A. Kaal, Secure Proof of Stake Protocol (2018). SSRN: https://ssrn.com/abstract=3125827

**Verify.** sha256 of source PDF `598d9bd95e4af7a0a35328677c6bfc069f69f2e32c30c720b3a0be98a23a40cb` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20and%20Kaal%20-%202018%20-%20Secure%20Proof%20of%20Stake%20Protocol.pdf

**Failure mode.** pos-cartel-formation  (family: recentralization-drift)

**Topics.** consensus-and-security, governance-design, decentralization

**Keywords.** proof-of-stake, cartels, delegation, centralization, stake-purchase

**Related claims.**

- extended_by: https://wulfkaal.github.io/claims/4796714-014
- extended_by: https://wulfkaal.github.io/claims/3266953-020
- extended_by: https://wulfkaal.github.io/claims/5225296-008

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.