Proof of Stake Fallacy

There is a theory that proof-of-stake (PoS) constitutes a comparable alternative to proof-of-work (PoW). It it true that both PoS and PoW delegate control over transaction ordering to people in control of the largest pool of certain capital.

The distinction is in the type of capital. PoW excludes no source of capital, while PoS excludes all capital that cannot acquire units of the coin. This difference has a material consequence for security.

In Other Means Principle it is shown that the ability of a coin to resist censorship depends on people paying miners to overpower the censor. Overcoming censorship is not possible in a PoS system, as the censor has acquired majority stake and cannot be unseated. As such PoS systems are not censorship resistant and the theory is therefore invalid.