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Why would this be any more plutocratic than any other capitalist economy? It's a mechanism where you can lock up ETH and get paid a steady return over time (abo
by dcolkitt 4y ago
Why would this be any more plutocratic than any other capitalist economy? It's a mechanism where you can lock up ETH and get paid a steady return over time (about 3.9% today). Similarly the US dollar has treasury bonds where you can lock up USD and get paid a steady return over time (about 3.4% today).
- AlexandrB 4y agoThat brings up an interesting point. Would PoS rewards get adjusted with central bank interest rates? If not, isn't there a risk of validators fleeing for better returns elsewhere?
- rcxdude 4y agoIf they do rates will go up. So in that sense it's self-levelling. And the rate corresponding to the minimum secure number of stakers is likely extremely high.
- exo762 4y agoAbsolutely. But validator block rewards are automatically adjusted to compensate for that.
- idiotsecant 4y agoYes, they get adjusted- by the market, the best adjuster there is! If you can make more investing in low-risk bonds you will do that. If you make more investing in ETH staking you will do that. Eventually it will more or less look like the bond market in terms of value.