Cameron Armstrong pfp
Cameron Armstrong
@cameron
Choosing violence today: Can anyone explain to me what value there is in staking an app token other than "paying you not to sell this token"? (NOT talking about a protocol using staked tokens for validation collateral, an honest to god APP token - why is staking useful in a "better for users and the app" sense)
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Connor McCormick ☀️ pfp
Connor McCormick ☀️
@nor
the only context where it's game theoretically meaningful is if there is risk of slashing. yield in that context is just to account for time value of money, which is pertinent if the time horizon of staking is long
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Connor McCormick ☀️ pfp
Connor McCormick ☀️
@nor
you could also think about investment as a kind of staking where you give up cash in exchange for rights (to governance or cashflows), that doesn't have risk of "slashing" in the same way
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