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jasperthefriendlyghost.Eth
@jasper-eth
A simple change to issuance like this will not stop LST dominance but it WILL kill off many Rocket Pool node operators who are far more sensitive to rate changes. If the goal is to keep Ethereum's solo stakers relevant, than this approach is not sufficient. 1/n
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jasperthefriendlyghost.Eth
@jasper-eth
Going from 3.5% to just over 2% yield at the current amount staked will have demonstrable impacts on home stakers! We cannot push this upgrade into Electra without understanding these impacts. Lowering staking yield will incentivize solo stakers to go out on the risk curve w/ restaking/abandoning node to hold LSTs.
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jasperthefriendlyghost.Eth
@jasper-eth
I strongly believe this proposal will harm solo stakers and benefit LSP dominance, even if it limits the total amount staked. I support MVI, but I am far from convinced that this is viable.
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Barnabé Monnot
@barnabe
What do you believe solo stakers will do, once this 2% (nominal!) yield is reached with the current curve, and the world around them is holding and using LSTs while their capital is stuck in a node?
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Barnabé Monnot
@barnabe
I understand the concern, nobody likes to end the party, but I think we should have an honest conversation without hyperboles on where we think we're going with the current state of things. There is no free yield in any world, so it really is all about maximising relative differences
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Barnabé Monnot
@barnabe
I believe this maximisation is far easier to do in a world where the staking set is limited and no one is able to become king of the hill (where the hill is not just the staking set, but the whole network indeed). Agreed with your points however that the conversation must be had
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jasperthefriendlyghost.Eth
@jasper-eth
I think we should be talking about increasing the issuance such that nominal yield stays higher. The current issuance curve breaks at the far end with Eigenlayer, the proposed curve breaks immediately. I don't see why we should be rushing into a world where solo stakers are pushed out.
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