@nixorokish @pintail_xyz @mostlyblocks More hyperbole. Where is the fire? If the network can’t handle <1% supply increase per year (which is lower than gold btw) then we might as well pack it up now because it is over.
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smeee.eth
3.6K posts
"Let these changes play out and stabilize before making major changes to issuance policy."
be patient and let the house burn down before putting out the fire
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Concise argument worth reading.
Particularly like the view of ETH as a commodity with functional utility.
imv this utility is composed of:
(1) Blockspace, which ETH buys.
(2) Value, which ETH stores.
High issuance for excess security is not conducive to either.
Zach Pandl@LowBeta
OK let's do this: we're weighing in on the contentious issue of $ETH's supply model TLDR: We think a change is warranted and would be bullish for $ETH longer-term The topic is a good litmus test for how people think about valuing crypto assets! Our take ⬇️⬇️
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@pintail_xyz @nixorokish @mostlyblocks This is hyperbole. The reality is that with so many major network changes underway, nobody knows what the long-term burn rate will look like. Let these changes play out and stabilize before making major changes to issuance policy.
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@cryptosmitties @nixorokish @mostlyblocks The current curve incentives every last ETH to be staked. In the long run, that is what the market will tend to. I'd prefer a curve that allows the market to reach equilibrium within a healthy staking ratio range.
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@pintail_xyz @nixorokish @mostlyblocks So what? Of course there are economies of scale with staking. Validator composition is a balance and curbing issuance could alter it. Be patient. Let the exit queue and onchain economy find the ratio. Staked ETH has duration risk that has not played out in the market yet.
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@cryptosmitties @nixorokish @mostlyblocks Dilution adjusted yield at equilibrium is low and is set by the participant with the lowest marginal cost - an LST holder. Altering the issuance curve doesn't change that, but it can help us avoid the problems from excessive staking ratio.
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@pintail_xyz @nixorokish @mostlyblocks Lowering issuance could force small and medium sized stakers to shut down. What if you constrain issuance and the only stakers that remain are hobbyists, DATs and Coinbase?
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@mostlyblocks It doesn't even get you more security. Too much stake opens Ethereum at greater risk of capture and makes it *less* secure. Constraining issuance improves security.
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smeee.eth retweetledi
smeee.eth retweetledi
Fidelity commends the Senate Banking Committee for advancing the CLARITY Act. The bill provides a balanced approach and, if passed, will offer statutory clarity to digital asset markets, benefiting American investors and helping ensure the U.S. remains a global leader in digital assets.
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@dampedspring Don't know but god help us if we get a dip in stocks
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This is seriously genuinely NOT a shit post.
With saylor buying gobs of BTC, financed by MSTR and STRC buying which appears additive and not swaps, and ETF flow fine, and Clarity Act wins, who the heck is selling all the coins at 35% below ATH's? Its such a mystery to me.
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@LowBeta 1) Sends bad message. 2) Always unanticipated 2nd order effects. The same decision makers didn’t anticipate LSTs and now want to change issuance. 3) We don’t know what the burn rate will be in the future. 4) Staking rate should come down organically with growth.
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OK let's do this: we're weighing in on the contentious issue of $ETH's supply model
TLDR: We think a change is warranted and would be bullish for $ETH longer-term
The topic is a good litmus test for how people think about valuing crypto assets!
Our take ⬇️⬇️
English
Ethereum Korea [the good one]
Ethereum Korea@ethereumkoreaio
한국 금융권에서 이더리움 관련 논의가 본격화되고 있습니다. 최근 교보생명, NH은행, NH투자증권, KB증권, 미래에셋, 하나증권, 메리츠증권, DB증권, Toss 등 금융권 관계자들과 이더리움을 주제로 한 자리들이 연달아 이어졌습니다. 대화의 결 또한 달라졌습니다. "블록체인 도입해야 하나?"가 아니라 "이더리움 인프라를 어떻게 구현할 것인가?"입니다. 토크나이제이션, 스테이블코인, RWA, 기관 DeFi 등 앞으로 더욱 기대가 되는 논의들이 오갔습니다. 이 흐름을 직접 만들어가고 있는 두 곳을 샤라웃합니다 💙
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@sayinshallah Tokenized gold you have to trust someone doesn’t rug you. Bitcoin does not have this. There are other trust assumptions but not counterparty risk.
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I don't understand the premise that "agents must use stablecoins."
Why can't an agent remember the 16 digits of a credit card?
Sorry maybe I'm a payments n00b. Stablecoins have a lot of great use cases, but ecommerce shopping is pretty well optimized already for cards.
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The coordination challenges around migrating to 0x02 is a good demonstration of how decentralized the pool of node operators is
Ben Edgington@benjaminion_xyz
I'm begging you, this would make my job so easy - consolidate your validators and stop keeping me from the golf course.
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hey fam,
I'm earning 5.6% on my collateral, paying 0% interest and earning 11% on my debt, and having my debt self-repaying gradually over time.
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I sat in on the UFO aliens meeting.
They’re very interested in buying ETH. They would like to build an interplanetary L2.
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$ETH is really starting to test my patience here ngl
Really not sure I can go thru another entire cycle watching it get lapped by every other cryptoasset again
Seems like everything except $ETH has kicked off a new bull cycle
This price action is pitiful. What a shame
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smeee.eth retweetledi
this will be the reaction of most investors and builders (including me) to the new push for tinkering with the ETH issuance curve "urgently"
Krugman@krugman87
I'm definitely very close to just being done with crypto. I've really only been interested in 3 tokens for a while now: $AAVE, $ETH and $LINK. I had to walk away from my aave position due to some of their top people showing poor judgement and self control. The recent exploit just solidified that for me. The vast majority of DeFi is dead in the water anyways. Tradfi isn't going to touch this stuff. Ethereum decided the next most important thing to tackle is... 50 bips of inflation? Oh no, people are participating in Ethereum's security! The horror! But this is just one in a long line of bone headed focuses (L2 roadmap anyone???). I still like LINK but the foundation is still dumping like 5-7% of the supply every year, which is a huge amount of inflation to absorb and likely one of the reasons the price action has been crap.
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@trent_vanepps People are frustrated because this gets brought up every 6 months based on nothing but vibes b/c some people at the EF don't like Lido
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"the most important thing to tackle"
strange commentary. it's one of many research/engineering streams
"this will be the reaction of most investors and builders"
many investors and builders i've engaged with are fine with the exploration and understand the tradeoffs
_gabrielShapir0@lex_node
this will be the reaction of most investors and builders (including me) to the new push for tinkering with the ETH issuance curve "urgently"
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smeee.eth retweetledi
Spot on and well said! I keep seeing people talk about lowering Ethereum's inflation to make it "sustainable". How is 0.8% not sustainable? It's already well below BTC, lower than gold and silver, lower than every fiat currency in the world. And even then it works, and phenomenally well.
Trying to micro-engineer one of Ethereum's most important safety mechanisms to fix a non-issue is absolutely not what should be happening.
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smeee.eth retweetledi
My take on issuance is that all this ETH goes to staking because it has nowhere else to go. The only real problem it creates is if there is a single LST that becomes too big to fail and its asset takes a dominant role in the ecosystem. I don’t buy the other concerns.
Truth be told, the dominance of the biggest LST was larger in the past, at lower levels of total ETH staked. I think the greater — but still theoretical — threat now is a potential cartel of centralized stakers.
These problems are similar, if not the same, regardless of the exact level of issuance or % of ETH staked. Because of that, limiting issuance/staking is the wrong treatment for a misdiagnosed disease.
The real problems are:
- there are no alternatives to staking yield for long-term ETH holders;
- liquid staking needs more competition and diversity.
Limiting issuance will not solve these problems. It may even make them worse.
For transparency @GolemFoundation stakes some ETH - you may think I am biased but in fact I know what I am talking about
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@colludingnode LSTs are how the market solves the duration risk from the exit queue among other things. What is the big problem?
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if there is a button to kill LSTs, I am slamming that shit immediately
Dima Gusakov@d_gusakov
If we cut @ethereum staking issuance, we will likely kill LSTs. Without LSTs, DeFi will shrink to the size of a penny. Without DeFi, @ethereum will lose its main value proposition. Without its value proposition, @ethereum will die. Do we really want to kill @ethereum?
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