Ethereum

FAQ: Ethereum issuance reduction

When it comes to reducing issuance, there are many important questions to consider. Having studied these questions extensively, I thought it would be fruitful to address them one by one with detailed answers.

Link 👇

FAQ: Ethereum issuance reduction

When it comes to reducing issuance, there are many important questions to consider. Having studied these questions extensively, I thought it would be fruitful to address them one by one with detailed answers.

Link 👇

https://ethresear.ch/t/faq-ethereum-issuance-reduction/19675

Developing transparent finance for @ethereum

Why should Ethereum reduce its issuance?

https://ethresear.ch/t/faq-ethereum-issuance-reduction/19675#why-should-ethereum-reduce-its-issuance-4

What about economic security? More stake makes Ethereum more secure right?

What about economic security? More stake makes Ethereum more secure right?

https://ethresear.ch/t/faq-ethereum-issuance-reduction/19675#what-about-economic-security-more-stake-makes-ethereum-more-secure-right-8

What is a desirable issuance reduction for the near future?

What is a desirable issuance reduction for the near future?

https://ethresear.ch/t/faq-ethereum-issuance-reduction/19675#what-is-a-desirable-issuance-reduction-for-the-near-future-9

Why not dynamically adjust the yield with a mechanism like EIP-1559 to guarantee some fixed target participation level?

Why not dynamically adjust the yield with a mechanism like EIP-1559 to guarantee some fixed target participation level?

https://ethresear.ch/t/faq-ethereum-issuance-reduction/19675#why-not-dynamically-adjust-the-yield-with-a-mechanism-like-eip-1559-to-guarantee-some-fixed-target-participation-level-16

How will a reduction in issuance affect the composition of the staking set?

How will a reduction in issuance affect the composition of the staking set?

https://ethresear.ch/t/faq-ethereum-issuance-reduction/19675#how-will-a-reduction-in-issuance-affect-the-composition-of-the-staking-set-21

What is the endgame issuance policy?

https://ethresear.ch/t/faq-ethereum-issuance-reduction/19675#what-is-the-endgame-issuance-policy-28

Why not just prevent new stakers from joining?

Why not just prevent new stakers from joining?

https://ethresear.ch/t/faq-ethereum-issuance-reduction/19675#why-not-just-prevent-new-stakers-from-joining-36

Can stakers profit from a reduced issuance and what is the relevance and impact of the real/proportional yield?

Can stakers profit from a reduced issuance and what is the relevance and impact of the real/proportional yield?

https://ethresear.ch/t/faq-ethereum-issuance-reduction/19675#can-stakers-profit-from-a-reduced-issuance-and-what-is-the-relevance-and-impact-of-the-realproportional-yield-37

Some users think that more yield is more fun and like to collect yield on their ETH. Why not lean into this?

Some users think that more yield is more fun and like to collect yield on their ETH. Why not lean into this?

https://ethresear.ch/t/faq-ethereum-issuance-reduction/19675#some-users-think-that-more-yield-is-more-fun-and-like-to-collect-yield-on-their-eth-why-not-lean-into-this-43

I post on Ethresearch to facilitate debate in the forum and will try to respond to any questions you may have. The following thread will simply list each question with a direct link to its answer.

This is the alt account of Sister Hazel. Writings at https://powerlaw.systems. Building https://testnet.uvio.network. 

The welfare gain applies at the protocol level, and emerges since users under equilibrium are compelled to assume lower costs. Hardware is merely one of these costs; there are many more such as illiquidity, trust in third parties and other factors increasing the risk premium, various opportunity costs, taxes, etc.

Maybe just do nothing. 

This FAQ thing makes a lot of assumptions that I do not think are true or real. 

Nobody's "welfare" is improved by reducing issuance. Nobody will "safe" on hardware only because issuance is reduced. 

I think you want to fix something that is not broken.

Nobody wants this.