Samus (orangesamus.eth)

My thoughts on issuance reduction: To target < 100% staked ETH you assume: - There is some yield “x%” where the market finds it irrational to take on the risks/opportunity costs of even delegating to someone else to stake - Issuance curve is chosen such that we cross below x% before we get to 100% staked ETH

• 2 replies
• 1 recast
• 4 reactions

The problem is that I think: - There is also some nominal yield “y%” that makes it irrational to be a solo or home staker after you get any lower than y% And until you find a way to make solo/home staking more competitive relative to centralized alternatives: - y% will always be greater than x%

• 1 reply
• 0 recasts
• 3 reactions

So I think the worst case scenario is the one that we get an issuance curve that leads to: - crossing below y% (no longer rational to solo/home stake) - And even worse: we are still > x% even at 100% ETH staked, meaning we didn’t accomplish our primary goal, and our validator set is highly centralized

• 1 reply
• 0 recasts
• 2 reactions

I think we should prioritize research to make decentralized staking more competitive, like ideas shown below: https://ethresear.ch/t/how-optional-non-kyc-validator-metadata-can-improve-staking-decentralization/17032 https://ethresear.ch/t/supporting-decentralized-staking-through-more-anti-correlation-incentives/19116

• 0 replies
• 0 recasts
• 2 reactions