Smith
@aidenxc
Ethereum’s current staking model has driven significant participation, with over 33% of ETH staked as of 2025. However, to further boost staking rates and enhance network security, a new incentive model could be explored. The existing 3-5% APR may not sufficiently attract smaller holders or compete with DeFi yields. Introducing tiered rewards, where higher staking amounts or longer lock-up periods yield better returns, could encourage broader participation. Alternatively, dynamic incentives tied to network demand or slashing risks might balance validator behavior. Gas fee sharing with stakers could also align interests. Any changes must avoid overcomplicating the system or favoring large holders excessively, ensuring decentralization. While Ethereum’s model is robust, tweaking incentives could push staking rates higher, strengthening the network’s resilience.
0 reply
0 recast
0 reaction