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Relationship between the Ethereum issuance curve and its validator set

What will be the effects of a change in the Ethereum issuance curve on the composition of the Ethereum validator set?

Project period

2024

Team

Nicolas Oderbolz, Matthias Hafner, Juan Beccuti, Thunj Chantramonklasri

Contact

Nicolas Oderbolz, Matthias Hafner, Juan Beccuti, Thunj Chantramonklasri

Project Description

The Center for Cryptoeconomics analyzes the implications of a proposed change to the Ethereum issuance curve on the Ethereum validator set. The proposed change would lead to a reduction a reduction in staking reward issuance, to limit the continued growth of staking in the Ethereum ecosystem. However, the potential impact of such a change to the issuance policy on different types of actors in the staking ecosystem remains under-explored. In particular, a reduction in staking rewards may risk undermining the decentralization of the validator set. To this end, the research team at the Center for Cryptoeconomics aims to contribute to the community's understanding of the effects of changes in the issuance schedule to the different types of stakers and the potential risks associated to the Ethereum ecosystem. We do this within the scope of the MVI Grants Program financed by cyber.fund.

Methods

  • Agent-based modelling
  • Data analytics
  • Econometrics
  • Theoretical Modelling

 

 

 

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