The Capital
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The Capital

Shares, Stake and control

Thoughts on holding shares and staking in crypto

Do you own shares?

According to a survey by finder, 33% of Brits own shares. 67% of the population say that they plan to buy stocks and shares in the future, and 2.2 million Brits (just 3%) have subscribed to a stocks and shares ISA in 2019.

Are you enrolled in a pension scheme?

In the UK, there is a thing called pension auto-enrolment. It's based on ideas from the Nudge theory that we humans like to stick with the default. So instead of making employees actively enroll in a pension scheme, it's now done by default. Of course, the amount of people currently enrolled in pensions is a lot higher than before.

Where do pension funds put their money?

So for better or worse, many employees in this country have money in pension funds. With current inflation rates, these funds have the difficult task of continuing to make sure your money remains worth something — even if you only get to cash out in 50 years.

What were shares supposed to be?

Let's take a step back and think about why this matters in the context of shares. Shares were the idea that people could participate in the growth of companies (gain financially) but also had a say in their direction.

Proxy Voting

Robinhood was the platform of choice for GameStop investors. But despite buying shares, they couldn’t vote directly — only through Proxy. As stated on the Robinhood support page: Voting by proxy allows you to cast your vote prior to the shareholder meeting without attending the meeting in person.

Source

Power in the Hands of Larry

This brings us back to Larry, and yes, this time, I will put an actual image of him. Here he is, probably thinking about how he can invest more of our pension money into high-yield opportunities that also fulfill ESG criteria.

Source

Bitcoin fixes this

Not sure how many times I’ve heard that, it’s somewhat a meme by now because most of the time when used, it doesn’t fix the problem.

You buy, you own a piece of it

You own, you have a thing to say

If you have shares, you also have a say in shareholder meetings. In PoS networks, we could see basic validation as a similar activity. You got tokens, you validate depending on if you think a transaction is valid or not.

CEX

A lot of the staking across blockchains happens on centralized exchanges. And sure enough, as an individual, they are the most convenient option — all you need to do is deposit money, and look at numbers go up.

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Naomi Oba

Writer in Crypto — passionate about financial education, blockchain, books, and food.