@vgr

Just caught up on 8363 debates. It feels like both sides are studiously ignoring the real problem — the lack of enough high-returns applications to compete with staking and stablecoins (which outsources the returns problem to the dollar economy). So the result is a tragedy of commons race to zero — stakers trying to extract premium yields at the expense of non-stakers, hoping to beat the decline in the asset itself and bail. OTOH, supporters seem to be inventing a blunt instrument to robustify the security of a system against problems that are due to the system being insufficiently used? I was trying to think of good analogies. One is NIMBYism. Resisting new housing construction improves housing value in the short term at the expense of the time and quality of life of commuters, and risks economic dynamism simply leaving the region. In SF there is at least a good reason for a nonzero yield floor since it’s a beautiful city. Can non-stakers figure out staking faster than stakers can figure out exits?

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