On The Brink with Castle Island cover image

Lorien Gabel and Benjamin Thalman (Figment) on Staking and the Ethereum Shanghai Upgrade (EP.413)

On The Brink with Castle Island

CHAPTER

The Negative Effects of Staking on the Ethereum Network

The thing about staking is you're actually, again, I'll probably yell at that for using this, but you're basically a minor. If we don't do our job properly, for example, if the infrastructure running is down, then you'll miss out on rewards. In the worst case scenario, there's something called slashing, which is as bad as it sounds. You can actually lose some of your principal, not 100%, usually somewhere between 1% and 5%. That has never happened to us. And we just built the company here around safety over liveness," she said.

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