4min chapter

The Defiant - DeFi Podcast cover image

Justin Drake on How The Merge Helps Make Ethereum the Settlement Layer of the Internet

The Defiant - DeFi Podcast

CHAPTER

Do You Think Proof of Stake Increases Theorium Decentralization?

In an open and competitive market, the te the profit kind of tend to ten to zero. In proofo o stake you have isly what called opportunity cost, which is the cost of money. For for every one dollar of economic security, you need to ssue one dollar every single year. So a hundred % issuance to cover the cost is much, much lower than three% per year in Proof of Stake. This could lead to moredicentralization. And it's not necessarily sufficient to have a low barrier to entry for fofvalidators. If these operators start mis behaving, then it's possible that there could be a case for the community to come together and slashed

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