Re:Ethereum: A Store of Value with Cash Flow [pdf]
by Paradigma11 on Wednesday April 21, 2021 @07:16AM
(#26888038)
The point is that customers are already paying a lot of fees in Ethereum for financial services on the blockchain. Right now that money goes to run a lot of powerplants and gpu farms but will sometime in the future go to Ethereum staker. PoS coins are a combination of money, store of value and investment in a financial service "cloud".
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Re:Ethereum: A Store of Value with Cash Flow [pdf]
by asenna on Wednesday April 21, 2021 @08:03AM
(#26888468)
It will actually not be going to the Ethereum staker, the "base-fee" is going to be burned (removed from supply) and no one gets it, that's what EIP-1559 does (expected to arrive in the July London hard-fork)
To add to this, the overall issuance of ETH yearly is going to reduce from about ~ 4+ Million ETH in the PoW model to about ~ 1.x Million ETH in the PoS model, because the PoS security does not require as much issuance.
Re:Ethereum: A Store of Value with Cash Flow [pdf]
by Paradigma11 on Wednesday April 21, 2021 @08:36AM
(#26888818)
You can only burn a little since:
1.)If you burn too much the whole pricing and ordering mechanism for operations does not work any more. Burning is only going to lead to big players in mining/staking and consumers making direct side arrangements.
2.) There is less incentive to stake since burning benefits all regardless if you stake or not. Its essentially a stock buyback. But sure you still have the inflationary block generation as rewards.
Re:Ethereum: A Store of Value with Cash Flow [pdf]
by Paradigma11 on Wednesday April 21, 2021 @02:26PM
(#26893560)
"But sure you still have the inflationary block generation as rewards."
To be more precise: You are still penalized by dilution/inflation if you dont stake.