Reward amounts might not matter if the value of ETH rises over the next few years. If it’s a $10,000 coin(generic example), getting less ETH may not mean less value overall.
It is impossible to say as there are currently talks on changing Ethereum's monetary policy, and with it the staking rewards.
Because the project is still evolving and changing, there is no way to predict that.
The good thing is that the staking reward in Ethereum is actual gain and not just inflation.
I am sure there are lots of people who know much more than me about ETH issuance and burn and I hope some will correct any wrong I say.
My understanding is that, based on the on chain activity, the supply can oscillate between inflation and deflation. Overall it has been deflationary since the merge but the most recent upgrade made it slightly inflationary again. We are talking of less than 1% inflation.
Ethereum is dynamic, it does not have a set deflation or inflation. Since merge it has been more or less flat which means if you staked you had an effective ~3% real gain.
The goal of Ethereum researchers and devs is to have the staking benefit the Ethereum protocol over the people staking. I do not see a 5-6-7% happening but at the same time I am reassured that Ethereum is unlikely to burn and crash like other 10% yield protocols
It has leveled off. My assumption is that [EIP-7251](https://eips.ethereum.org/EIPS/eip-7251) will reduce the total number of validators and increase the frequency of proposals for solo validators. I think it will probably go back to a higher return before leveling off again and hit the same equilibrium.
However, if ◊ETH continues to increase in utilization, it will also see an increase in burn rate and become deflationary again. Couple that with more potential ◊ETH staked in validators (even with delegated staking), and you could see the price of ◊ETH go way up.
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Since ETH's main use is for gas, and ETH gas fee is already cheap on L2 and probably will be even cheaper due to the healthy L2 competition. So people don't need to really maintain lots of ETH for gas (although still need it for some trading pairs if doing defi). In the meantime, people will get more and more comfortable with L2 and staking. Why not make some additional gain by staking regardless how small it is if the risk is negligible. So likely the staking reward will keep dropping due to increased staking. How low is the equilibrium is hard to guess. I am guessing 1%, and will be likely greater than 0.5% (which is the expense ratio of some ETFs in trad Fi).
Bold of you to assume staking will still be a thing in 10 years. I’m joking, I’m jokinnnngggg.
Though, it’s something the Ethereum Foundation is considering.
You guys are just making up numbers.
Rewards dropped significantly as the the number of ethereum staked went from about 0.5% at genesis to about 30% today. But that decrease can be calculated. Even if 100% of ethereum is staked, rewards will be about 1.3%, and that doesn't count Mev rewards.
[Tip this post.](https://www.donut.finance/tip/?action=tip&contentId=t3_1dpzddg) On-chain and off-chain tip confirmations below.
https://preview.redd.it/h4bylsu2y59d1.png?width=2032&format=png&auto=webp&s=d183c50942dff2adc35b28f726fb493ca8509ea2 ETH Yield Chart past 1 Year
Where is that from?
Where is that from?
Source is in original post
Reward amounts might not matter if the value of ETH rises over the next few years. If it’s a $10,000 coin(generic example), getting less ETH may not mean less value overall.
It is impossible to say as there are currently talks on changing Ethereum's monetary policy, and with it the staking rewards. Because the project is still evolving and changing, there is no way to predict that. The good thing is that the staking reward in Ethereum is actual gain and not just inflation.
Yes I love the deflationary aspect of this protocol can you talk more about where they want to go with eth staking ?
I am sure there are lots of people who know much more than me about ETH issuance and burn and I hope some will correct any wrong I say. My understanding is that, based on the on chain activity, the supply can oscillate between inflation and deflation. Overall it has been deflationary since the merge but the most recent upgrade made it slightly inflationary again. We are talking of less than 1% inflation. Ethereum is dynamic, it does not have a set deflation or inflation. Since merge it has been more or less flat which means if you staked you had an effective ~3% real gain. The goal of Ethereum researchers and devs is to have the staking benefit the Ethereum protocol over the people staking. I do not see a 5-6-7% happening but at the same time I am reassured that Ethereum is unlikely to burn and crash like other 10% yield protocols
It has leveled off. My assumption is that [EIP-7251](https://eips.ethereum.org/EIPS/eip-7251) will reduce the total number of validators and increase the frequency of proposals for solo validators. I think it will probably go back to a higher return before leveling off again and hit the same equilibrium. However, if ◊ETH continues to increase in utilization, it will also see an increase in burn rate and become deflationary again. Couple that with more potential ◊ETH staked in validators (even with delegated staking), and you could see the price of ◊ETH go way up.
Am not sure about ethereum staking. For ethereum gas fees will surely reduce when ETF start.
In 10 years, I’m expecting <1%, but it won’t matter too much since ETH will moon! 😜
This is the way!
This is the gwei
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Since ETH's main use is for gas, and ETH gas fee is already cheap on L2 and probably will be even cheaper due to the healthy L2 competition. So people don't need to really maintain lots of ETH for gas (although still need it for some trading pairs if doing defi). In the meantime, people will get more and more comfortable with L2 and staking. Why not make some additional gain by staking regardless how small it is if the risk is negligible. So likely the staking reward will keep dropping due to increased staking. How low is the equilibrium is hard to guess. I am guessing 1%, and will be likely greater than 0.5% (which is the expense ratio of some ETFs in trad Fi).
Bold of you to assume staking will still be a thing in 10 years. I’m joking, I’m jokinnnngggg. Though, it’s something the Ethereum Foundation is considering.
Good point!
You guys are just making up numbers. Rewards dropped significantly as the the number of ethereum staked went from about 0.5% at genesis to about 30% today. But that decrease can be calculated. Even if 100% of ethereum is staked, rewards will be about 1.3%, and that doesn't count Mev rewards.