As @friedger mentioned, I think we want 1000’s of miners or as many as possible, as can be profitably incentivized to participate.
@GM-Chung I’m thinking both ETH PoS and this proposal of limiting BTC bids to increase horizontal scaling doesn’t really change much since the scaling has a relatively low cost of just spinning up more software instances compared to the more costly scaling of PoW hardware.
I wonder if an algo can be devised that makes it more costly for a rich entity to spin up more instances - assuming extra Tx fees isn’t enough. Like say the higher the total number of miners there are, the lower the maximum allowed BTC per-block bid level. In this way a whale with lots of BTC would not benefit much from spinning up a lot more nodes, and at the same time other new mining entities would be benefit to begin mining, which increases the number of miners and also lowers the max amount of BTC per-block bid allowed for all miners.
And like Bitcoin’s difficulty adjustment maybe there should be a smoothing factor where these parameters are averaged over some number of blocks, if it helps in some way like making short term gaming the system more difficult.