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Benido
@benido
Let’s assume @justindrake‘s proposal/ idea of negative issuance of capture MEV and restaking returns goes live. Would that means that every solo staker would need to restake to compete and have a positive real yield?
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nixo
@nixo
has Justin proposed negative issuance? If so, I've missed it, I thought it was just an idea floated by Anders When issuance drops low enough (which it will in the current curve), yes - all stakers will need to participate in external yield mechanisms to stay competitive if external yield makes up a significant part of rewards mevburn won't help this but I don't think it'll hurt it either - as long as there's external yield, stake will continue to join the network and drop the real yield and dilute all ETH holders with increased inflation
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Benido
@benido
He described negative issuance as a way to capture more than just MEV, but explicitly restaking returns in a podcast episode. So if restaking is 5%, negative issuance could be -4%. But this means literally all stakers would have to go full risk on vi restaking and I am not sure all solo stakers will do that.
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Benido
@benido
Source is the „verified by bitcoin suisse“ podcast (episode 3). To be fair he also „proposes“ airdrops for solo stakers to make them more competitive, so they could live with -4% if they get 20% via airdrops. But that’s a huge gamble, at least I haven’t received an airdrop based on my solo staking activities… and I am also not sure I would be comfortable.
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nixo
@nixo
yeah, I certainly don't want to participate in extra-protocol services because I'm forced into the yield structure and I think Ethereum would lose its most valuable participants if they took on a negative issuance curve Things are changing so rapidly with so many different proposals and I'm hopeful that researchers very much have solo stakers in mind so I suspect something like that wouldn't make it through
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