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If the vast majority of stakers agree to OFAC regulations (which appears to be the case) then the end result is censorship.


What gives the appearance that this is the case?

Even if the "vast majority" of stakers agree with the regulation, the regulation is ambiguous as to whether stakers are expected to refrain from including TC transactions in their own blocks, or actively orphan all blocks that include TC transactions. The latter hurts their staking revenue and effectuates a soft fork. (Staking revenue is hurt due to the inactivity correlation factor that the network uses to calculate rewards.)

If the regulation only demands the former, then the network will continue status-quo, except that TC transactions may take a couple minutes to be included instead of 12 seconds.


It'll all become clear soon enough.




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