✳flâneur — a map of the web's best reading

Staking issuance is not net neutral — polynya

mirror.xyz · 2,159 words · saved by 1 readers

I understand there’s a lot of in-depth research around this, and almost all proof-of-stake L1s are fundamentally designed around this assumption. It does seem to make sense once you consider base L1 assets as analogous to equities or currencies, but I believe L1 assets are a completely new breed that’s a combination of currency, equity, store-of-value, speculative asset, economic bandwidth and defence budget. As such, I believe we need heuristics rather than academic research to understand why staking issuance is actually net negative. To be clear, I’m an observer, not a researcher, so please don’t take what I say seriously, this is 100% speculative, but too many things I have seen in the crypto space has convinced me this model isn’t working, and will fail long term.

I understand there’s a lot of in-depth research around this, and almost all proof-of-stake L1s are fundamentally designed around the assumption that staking issuance is net neutral. It does seem to make sense once you consider base L1 assets as analogous to equities or currencies, but I believe L1 assets are a completely new breed that’s a combination of currency, equity, store-of-value, speculative asset, economic bandwidth and defence budget. As such, I believe we need heuristics rather than academic research to understand why staking issuance is actually net negative. To be clear, I’m an ob

Explore this link on the map →

related reading