New post on ! Key Insights from a Formal Framework of the Ethereum Staking Market By: - Juan Beccuti - Thunj Chantramonklasri - Matthias Hafner - Nicolas Oderbolz 🔗 Highlights: - Solo stakers are more sensitive to changes in staking yields compared to other types of stakers, which could lead to a decline in their market share. - Reducing Ethereum's issuance schedule may decrease the overall supply of staked ETH and increase the market share of liquid staking solutions over solo staking. - The game-theoretic model indicates that solo staking could become less profitable, potentially driving solo stakers to switch to other staking methods. - The presence of additional revenue streams, like DeFi yields, makes other staking categories less responsive to changes in consensus rewards, further disadvantaging solo stakers. - The findings suggest that changes in the issuance schedule could undermine the long-term viability of solo staking, impacting the decentralization of the Ethereum network. ELI5: This research looks at how changes in Ethereum's reward system for staking can affect different types of stakers, especially solo stakers. It uses a game-theory model to analyze how these changes might impact the overall decentralization of the Ethereum staking market.