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by ruuda 1411 days ago
> If a staker does nothing, they continue to collect and collect

They do, but the supply of the token also goes up, so their share of the supply doesn’t grow as much, and relative to other stakers, it doesn’t grow in proportion at all. It is true that inflation rewards effectively move value from non-stakers to stakers, but nothing prevents most of the supply from being staked, especially with liquid staking derivatives.

> Staking is just trivial in comparison

I agree that staking is, but operating the node is not! Operating a validator is actually more demanding than operating a miner. For a miner, there is no disadvantage in being offline except for the opportunity cost. But a validator has a duty, and will be penalized for downtime. (Granted, the requirements on Ethereum are quite lax — on purpose, to make it easier for enthusiasts and other non-professionals to operate a node.) Operating a validator requires monitoring and maintenance like any other software. Your server will run out of disk space, your node will disconnect if you don’t update the node software in time, etc. Most validators in most of the PoS networks are operated by professional companies with dedicated SRE teams because of this.

1 comments

For a major staker, are you saying that running a validator is equivalent in work/cost to running a warehouse full of miners? Remember, we're talking about major players, not just some random guy doing this in his closet.