Proof-of-stake (PoS) has emerged as a natural alternative to the resource-intensive Proof-of-Work (PoW) blockchain, as was recently seen with the Ethereum Merge. PoS-based blockchains require an initial stake distribution among the participants. Typically, this initial stake distribution is called bootstrapping. This paper argues that existing bootstrapping protocols are prone to centralization. To address centralization due to bootstrapping, we propose a novel game $\Gamma_\textsf{bootstrap}$. Next, we define three conditions: (i) Individual Rationality (IR), (ii) Incentive Compatibility (IC), and (iii) $(\tau,\delta,\epsilon)-$ Decentralization that an \emph{ideal} bootstrapping protocol must satisfy. $(\tau,\delta,\epsilon)$ are certain parameters to quantify decentralization. Towards this, we propose a novel centralization metric, C-NORM, to measure centralization in a PoS System. We define a centralization game -- $\Gamma_\textsf{cent}$, to analyze the efficacy of centralization metrics. We show that C-NORM effectively captures centralization in the presence of strategic players capable of launching Sybil attacks. With C-NORM, we analyze popular bootstrapping protocols such as Airdrop and Proof-of-Burn (PoB) and prove that they do not satisfy IC and IR, respectively. Motivated by the Ethereum Merge, we study W2SB (a PoW-based bootstrapping protocol) and prove it is ideal. In addition, we conduct synthetic simulations to empirically validate that W2SB bootstrapped PoS is decentralized.
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