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That's was my point. The ability to stake shouldn't be based on an arbitrary and temporary exchange rate. What happens if USD/ETH is $0.0001? $1B? It should s
by chrischattin 5y ago
That's was my point. The ability to stake shouldn't be based on an arbitrary and temporary exchange rate. What happens if USD/ETH is $0.0001? $1B? It should still work regardless of the exchange rate.
Current implementation depends on the exchange rate and creates an incentive structure towards centralization.
- exo762 5y ago> Current implementation depends on the exchange rate No, it does not. You are staking ETH, not USD. Essentially, you are staking a percentage of all ETH, percentage capped from below.
- chrischattin 5y agoThe decision to use 32 ETH was a trade off based on the exchange rate at the time, 32ETH being ~$5k, which the devs thought was enough so that it wouldn’t be cost prohibitive to get involved and hurt enough to stay honest. When the exchange rate changes dramatically, like it did and will in the future, it changes the incentive structure in staking. So, yes, the current implementation’s incentive structures do depend on the exchange rate.
- cdiddy2 5y ago32 ETH wasn't chosen randomly. There is a cost to having too many validators on the network. 32 ETH was chosen to make sure that didn't happen while still being low enough to allow for a lot of validators.