Apologies, I don’t think I have an answer to this question.
I have skimmed through your paper and I think I understand the situation better now. It seems that we just have to accept that stakes will be visible and reduce the shielded pool of Zcash to some degree, or sanitize the view as you suggest in the paper. The sanitization protocol would have to use another sybil protection mechanism like proof of work or proof of space, which does keep an out of band method of earning Zcash. This would basically be a hybrid PoW/PoS system correct? That was ironically a solution which the ECC moved away from.
I haven’t thought through this separation much. But, if we do that, it appears there would either be (i) effectively two different tokens – shielded or visible, or (ii) an external mechanism to exchange a shielded token with a visible one. I do not know if/how those side channels would have an effect on overall privacy and safety/liveness.
Generally speaking, I am not a fan of going back to PoW or relying on another source of trust. Currently, we are working towards a mechanism where we can trade-off these properties in some ways. I will keep the thread posted on it.
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Zcash already has a transparent pool. I don’t think there would be much change from the current situation, except there would be an economic incentive to send ZEC to the transparent pool.
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