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1 sat \ 0 replies \ @nerd2ninja 12 Aug 2023 \ on: Since only economic nodes matter, doesn't this sound a little bit like POS? bitcoin
So what they're trying to do is quantify how social consensus works. Since people sold off forked off coins and bought and held what we call Bitcoin, this method of the higher price coin wins is one way that they're trying to think about it.
It helps to be the higher price coin. You likely have a larger userbase, you can pay your miners more and therefore have a higher hashrate (and some of that hashrate can attack the opposing chain for funsies sometimes) you keep all the network effects and the forked off coin doesn't.
So if you aren't paying your miners more (because you're an ETF and internal balance transfers don't pay miner fees) and you don't have network effects (at least not grassroots small business person to person network effects) then its pretty risky to sell off the coin you don't agree with, but need to do business.