[wmf]

Delegation has nothing to do with it. If you own, say, 1% of staked coins you get 1% of the staking rewards in perpetuity in exchange for doing almost nothing.

I don't consider this a problem but it's a fact that PoS works that way.

[pcthrowaway]

This is true (and honestly something I haven't given much thought to). It's true in any economy that the rich can leverage their wealth to get richer through investments at a higher earnings rate than the poor can.

I do like that cryptocurrency platforms can put limits on "how much" leverage they get, to significantly close gap between potential "percentage" return on investments between wealthy and 'poor', and remove the ability for third parties to operate which give preferential treatment to people with high concentration of total market cap.

If you own 1 billion USD, then sure, you're going to get a larger return on investments (when measuring in USD) than someone with 100 USD, even if the percentage RoA was the same. Because of how classical economic systems work though, these are very grossly disparate. Someone with 1 billion USD may be able to generate 5-20% return on investments in a year, whereas someone with 100 USD would be lucky to get 3% (certainly, larger returns are possible with luck and wise investments, I'm talking purely in the aggregate over low-risk investments, like holding your money in an account which pays interest).

But let's assume the person with 1 billion USD and 100 USD are both getting 1% interest annually; the person with 1 billion USD is still making more money from investments because they have 999999900 more USD which they are investing.

PoS doesn't solve that latter problem, but it can close the gap on the return expressed as a percentage of investment