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Terra Post Mortem and Future with Kevin Zhou, One of the Few Investors Who Predicted the Crash

The Defiant - DeFi Podcast

CHAPTER

What Is Going on With Proof of Stake?

With proof of stake and with staking, what exactly is going on financially when you stake? So if everybody stakes, then everybody gets the senorage. The amount that you get in staking combats the inflation same that happens on the supply side. Now let's say nobody staked except for one person. Then that person collects all of the yield and gets zero inflation. He faces zero inflation because the only inflation he faces is the new money that he gets. And where does this real yield come from? It comes from the non stakers. So it effectively a transfer o value from the stakers or from thenon stakers to the stakers. Right now, in practice,

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