How Staking and Eth 2.0 Makes the Ethereum Economy More “Sustainable”

In this episode, Christine Kim and Will Foxley discuss with David Hoffman, the co-founder of Bankless, the market implications of a dual Ethereum blockchain and what new realities staking presents to the long-term value proposition of ether.

According to Hoffman’s “Ether as a triple-point asset” thesis, Ethereum 2.0 bolsters ether’s value proposition as a capital asset. This is because Eth 2.0 enables staking on the protocol level.

For all ether holders with a minimum balance of 32 ETH, they can earn an annual percentage return for locking in their crypto assets to the network and becoming a validator. This is a use case for ether on top of its existing functionalities as a form of payment for fees and as a store of value in decentralized finance applications.

Eth 2.0 strengthens the diverse ways in which ether can be used. However, it also complicates the monetary policy of the Ethereum protocol. Instead of ether issuance being restricted to one blockchain network, the launch of Eth 2.0 has effectively created two parallel networks both issuing ether and driving up the crypto asset’s total supply.

However, the dual issuance of ether is a temporary state that in the long run will make the Ethereum economy more “sustainable,” according to Hoffman.

“Ethereum has committed to this early research and development phase in the beginnings of its genesis. That’s the whole entire effort behind Eth 2.0 and that’s why the monetary policy of ether is so jagged and unpredictable because the monetary policy of ether is a tool for Ethereum to reach its goals,” said Hoffman.

And what are Ethereum’s goals exactly? Listen to the full episode to find out!

For more weekly insights on Eth 2.0 development, be sure to check out and subscribe to Will Foxley and I’s weekly newsletter, Valid Points.

Links mentioned in the podcast:

EthHub Explainer on Ethereum Monetary Policy –

Lyn Alden’s blog post –

An Economic Analysis of Ethereum

Rocket Pool –


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The Unexpected Challenges of CoinDesk’s First Staking Venture

In this episode, Christine Kim and Will Foxley discuss with CoinDesk Director of Engineering Spencer Beggs how the idea of staking on Ethereum 2.0 came about and the early decisions that had to be made to get the project started.

“I feel I have become paranoid doing this project.”

At the start of the new year, CoinDesk Director of Engineering Spencer Beggs began working on setting up an Ethereum 2.0 validator node. The process, he explained, was particularly interesting from “the security perspective.”

“You really do think about security. Where are you storing your keys and your mnemonics? … You start thinking in a really paranoid manner,” said Beggs.

Ethereum 2.0 is a new parallel Ethereum blockchain that launched in December. Designed to ultimately replace Ethereum’s base layer technology and radically improve network scalability, the only actors on Eth 2.0 able to engage meaningfully with the new blockchain are so-called validators.

As unveiled in November, CoinDesk has embarked on a project to run validator operations in-house and glean direct, real-time data about Eth 2.0. The goal is to deepen CoinDesk’s editorial coverage of the network at its most untested and potentially vulnerable phases of development.

At the same time, this project has also offered important lessons about the trade-offs and decisions the users who are considering joining the Eth 2.0 network will make.

Outside of learning about security, CoinDesk tech reporter Will Foxley recounts wrestling with the decision of whether to use a staking-as-a-service provider or run a validator node independently during the early weeks of the Valid Points project.

“We started looking around at staking-as-a-service providers, and there are a lot out there. There’s gotta be over 15 at this point, not including [cryptocurrency] exchanges that operate staking services like Coinbase or Kraken. We were looking at who can do this for us quickly so we can get up and start running … and who can provide data for us,” said Foxley.

For the full breakdown of how CoinDesk is going about staking on Ethereum 2.0, the important decisions that were made along the way and the lessons learned, listen to the inaugural episode of “Mapping Out Eth 2.0.”

Foxley and Kim also have a weekly newsletter tied to the Valid Points project where they dive deeper into Ethereum 2.0-related topics and the health of CoinDesk’s validator node. To get these updates straight to your inbox, sign-up for free here.


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