This post will be dedicated to questions or queries made on Telegram, that I believe other users may be interested in. Also feel free to ask any queries
Question from @Trikpakral Patrik Kristl, [19.04.18 18:21]
Is there a way to prevent somebody from amassing too much vote power and basically centralizing things through governance?
Neuron @NeuronOfRados responded [19.04.18 18:40]
I can write another wall of text with our thoughts on the matter, but the short gist of it is that a centralized party can surely amass these votes by simply purchasing the tokens, and there is nothing you can really do with it. Limiting amount of tokens to be owned by one address is stupid - it will just encourage the party to split their funds in 2, or 4, or 10 addresses
So might as well let them own things out in the open!
Now, let’s assume somebody did buy the majority of SATURN to influence the votes. Remember, they didn’t get this power for free, they had to pay for it! So they have a financial incentive to keep Saturn Network going strong.
If they are good at it, if their decisions are helping the network grow - so will the price of the tokens on the market. We cannot really complain that somebody smart and capable decided to buy all these tokens, do their research, and make smart decisions that benefit everybody.
If, however, the decisions that they make are shitty and are hurting Saturn Network, people will stop using it and the price of the token will go down. At this point others can buy tokens from this centralized gentleman at a discount and correct course, and the value of the token will recover. So the value redistribution mechanism is built into the protocol, at the intersection of technology and the free market and worst case scenario, they buy all the tokens, and fuck up the system intentionally. I.e. a competitor might buy all the tokens and ban all trades, in an effort to sabotage Saturn Protocol. Well, the technology is open source, and worked great until that one person came over! So the community can decide to hard fork, issue a new token and deploy new smart contracts. The attacker simply wasted a lot of money, and Saturn Network just came back stronger than before.
This scenario with an adversary attack is the reason why I personally believe in the long-term value of SATURN token. The more expensive the token is, the more secure the system becomes to such economical attack.
(i.e. the attacker will have to spend that much more money to buy a big portion of SATURN with the intention to shut it down). So as Saturn Protocol becomes more used by traders, they will be incentivized to HODL at least a little bit of SATURN to prevent this attack from happening. And why not HODL if a successful operation of the protocol just makes the token more valuable? Win-Win