2min chapter

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What's Next For ATOM 2.0? | Youssef Amrani, Sam Hart

0xResearch

CHAPTER

The Main Purpose of Liquid Staking

There's a cap on the amount of assets staked to a specific validator that can be issued as a as a delegation share. The main purpose of this is just to solve a principal agent problem between the so that the validator has given the game and you know so there are kind of like intrinsic interested parties that that you can use to kind of backstop the system. Without something like that in my view liquid staking is kind of in in all ways like more harmful and more dangerous.

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