The Effect of ETH-er Burn on Yields

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The supply of ETH or stake is going to go down probably, right? Yes. The total amount of ETH-state is going togo down. Yields you're claiming is saying the same. Over time, the equilibrium yield is the same. Yeah. But the same rewards per validator and fewer validators means less issuance which is a goes back to Justin saying that there's also a savings on issuance on top of the MEV burn that's happening. Okay. So like Raleigh intuitively, we're taking away yields from ETH-stateers and we're burning it, giving it to ETH-er holders. Yet Justin is still saying that the yields are going to stay the

Ethereum is getting yet another economic upgrade! The scarcity engine is getting a massive level up with the advent of the MEV Burn.

With Justin Drake and Domothy, they walk us through the research and reasoning behind this next upgrade

Just when we thought we couldn’t get any more bullish…

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------ Topics Covered

0:00 Intro 7:00 What is MEV? 13:30 MEV is Subjective 17:15 The Oil Analogy 21:15 The Benefits of Smoothing 28:35 Builders and Proposers 38:45 Forced Centralization 44:35 Rug Pool Protection 48:30 Distribution 58:20 Pros of Burning 1:05:15 Burning on Overdrive 1:09:30 Does this Hurt Stakers? 1:13:55 Too Deflationary? 1:23:30 Monetary Premium 1:28:15 EIP-4844 1:31:00 The Engine 1:35:50 Wen?

——— Resources:

Justin Drake: https://twitter.com/drakefjustin?s=20

Dom: https://twitter.com/domothy?s=20

Hildobby's Dune Board: https://dune.com/hildobby/eth2-staking

Ultrasound.Money: https://ultrasound.money/

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