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You can buy ethereum on an exchange. Essentially they're changing the economic commitment required to participate in the consensus from demonstration of computa
by AlexCoventry 4y ago
You can buy ethereum on an exchange. Essentially they're changing the economic commitment required to participate in the consensus from demonstration of computational work to a monetary stake.
- XorNot 4y agoThe end state of that is that all Ethereum winds up being staked. There's no reason not to stake Ethereum if there's no Ethereum inflation, and so the only new source of Ethereum would be PoW-mining.
- lokar 4y agoWon't it end up being deflationary under pow?
- ETH_start 4y agoPoW-mining is being turned off. The source of new ETH will be ETH holders selling ETH to meet liquidity needs. People cannot save 100% of their income forever.
- Yizahi 4y agoMost of it probably. And the more tokens you have the easier is to put majority of them in the stake, also any fees are irrelevant on the large scale operations, unlike the small transfers. So The biggest holders of tokens become the biggest stakers, and thus become the biggest earners. Since the rate of token accumulation will only increase because the of compounding of the tokens in the stake (new profits will be staked too).