4 ms·

Staking pays all stakers out proportional to their stake, which is as fair as is possible, and more fair than PoW. Distributed staking pools lower the barrier t

by pshc 4y ago

Staking pays all stakers out proportional to their stake, which is as fair as is possible, and more fair than PoW. Distributed staking pools lower the barrier to entry to 0.01 ETH. Ethereum will still be printing ETH in perpetuity; it only becomes deflationary whenever more is burned than printed.

rufusroflpunch 4y ago
> Staking pays all stakers out proportional to their stake, which is as fair as is possible, and more fair than PoW. Distributed staking pools lower the barrier to entry to 0.01 ETH. This doesn't change the economics of what I said, which are about opportunity cost of staking vs. spending. > Ethereum will still be printing ETH in perpetuity; it only becomes deflationary whenever more is burned than printed. I understand this. But what I've been hearing from ETH holders forever now, is that ETH will be going deflationary. As in, burning more ETH than printing is something will definitely be happening. It's the bedrock of the flipping narrative.
- pshc 4y ago
  > Staking that 1 ETH just got 10% more expensive because the opportunity cost of staking that ETH increased relative to spending it. Economically, this means that the system is going to drive out marginal stakers, by design. I don't really get it. It's more expensive because you're making more money? Why wouldn't everyone just stake until they feel like spending? How does this drive out marginal stakers? > But what I've been hearing from ETH holders forever These are just people pumping their bags. No one actually knows how it's going down. Anyone who holds such alpha isn't posting it on Twitter.
- svachalek 4y ago
  Based on current and projected usage vs staking rewards, it looks inevitable. However the rules that Ethereum operates by are not immutable. They have changed, and they will change again. So just because it looks like it will be deflationary this year, doesn't mean it will always be deflationary.

by pshc 4y ago

rufusroflpunch 4y ago

> Staking pays all stakers out proportional to their stake, which is as fair as is possible, and more fair than PoW. Distributed staking pools lower the barrier to entry to 0.01 ETH. This doesn't change the economics of what I said, which are about opportunity cost of staking vs. spending. > Ethereum will still be printing ETH in perpetuity; it only becomes deflationary whenever more is burned than printed. I understand this. But what I've been hearing from ETH holders forever now, is that ETH will be going deflationary. As in, burning more ETH than printing is something will definitely be happening. It's the bedrock of the flipping narrative.

pshc 4y ago
> Staking that 1 ETH just got 10% more expensive because the opportunity cost of staking that ETH increased relative to spending it. Economically, this means that the system is going to drive out marginal stakers, by design. I don't really get it. It's more expensive because you're making more money? Why wouldn't everyone just stake until they feel like spending? How does this drive out marginal stakers? > But what I've been hearing from ETH holders forever These are just people pumping their bags. No one actually knows how it's going down. Anyone who holds such alpha isn't posting it on Twitter.
svachalek 4y ago
Based on current and projected usage vs staking rewards, it looks inevitable. However the rules that Ethereum operates by are not immutable. They have changed, and they will change again. So just because it looks like it will be deflationary this year, doesn't mean it will always be deflationary.