Ethereum

Cross-posting a thought on staking from the other app:

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Perhaps we should recognize that 32 ETH is much more of a barrier for stakers than bandwidth reqs, and temporarily do a trade where we up the bandwidth reqs a bit and in exchange drop the staking deposit minimum to eg. 16 or 24 ETH.

It's net-good for both staking accessibility and scale. Then once we figure out peerdas, bandwidth reqs go back down, and once we figure out orbit SSF, the deposit minimum can drop to 1 ETH.

Counterpoint: at 32 ETH, one validator makes ~$3k a year = only very slightly more than the zero-labor option of holding stETH/rpETH.

The limiting factor isn't stake--it's the complexity and toil of running a validator. Make it painless to validate and many more will do it!

Real World Ethereum 🌎 
building /daimo ✳️ 

If you actually want more home stakers:

- Remove the 32eth cap. One validator instead of 10 = less complexity, less bandwidth, the one thing you can't easily buy more of.
- Fund projects that make it max easy to run a node!

https://warpcast.com/dcposch.eth/0xb1bc51b8

I should have set them up a million times over, the amount of time involved is in fact the limiting factor. The tradeoff costs the primary focus so it has to be full time hobby or it’s too much friction

Security, austrian school. Developing noble cryptography: audited js libraries for web3. https://paulmillr.com/noble

Sure, the offline penalties are small. My point is the duties of running a validator are hardly worth it for a single sub-32 ETH stake with an APY well below WACC.

Regardless of how much I stake, the minimum set of duties is the same: I need to run and occasionally upgrade a $1K NUC, upgrade the CL/EL ideally twice monthly (the current release cycle), ensure adequate bandwidth and troubleshoot connectivity issues, maintain the security of my node and private key, have a remote access plan for when I travel for a prolonged period, have a legacy plan in case I pass away and my spouse has no idea what to do, etc.

The time and effort investment is not necessarily huge (I don’t want to turn off potential stakers), however it also remains constant with a larger stake, whereas the returns increase linearly.

None of this matters if I just run an ETH or BTC node or a TOR relay. That’s involvement but not commitment.

In preparing an eggs-and-bacon breakfast, the chicken is involved, but the pig is committed!

I had made that same point further down in the original thread by Vitalik — running a validator node is more time, effort, and risk commitment than it is worth for a sub-32 ETH stake, IMHO.

Great if some people choose to do it anyway, but I don’t expect there will be that many

@backpack put a bank in your pocket and use your money whenever, wherever, however without permission

/backpack
/notdevin
icebreaker.xyz/notdevin

I had made that same point further down in the original thread by Vitalik — running a validator node is more time, effort, and risk commitment than it is worth for a sub-32 ETH stake, IMHO.

Great if some people choose to do it anyway, but I don’t expect there will be that many

https://warpcast.com/aviationdoctor.eth/0x1c46bcb3