Unveiling the POS Illusion: Staking Yield Is Not Profit
Haseeb recently mentioned in a Podcast with The Rollup that most staking models in the market are an economic illusion. Staking is viewed as a risk-free income, but in reality, it's just a means to prevent asset dilution:
If you stake with an 8% annual yield, but the underlying asset is also inflating by 8% annually, you're essentially earning nothing and might even be taxed on this nominal yield.
He emphasized that the Baby Boomer generation loves yields, which is why this product was created without considering the structural flaws in PoS token economic design: "When the returns from staking are merely to combat inflation rather than create real value, it's similar to 'high-yield junk bonds' in traditional financial markets."
A Misunderstanding: "Paying for Network Security" Sounds Meme-like
The core concept of PoS is: "Let token holders stake assets, become validators, and enhance network security through economic incentives." However, Haseeb believes this logic has always been flawed:
The true determinant of a chain's security is the health of the software itself, the diversity of validators or application ecosystems, not just a 6% or 8% yield.
He candidly admits that most PoS chain validators are now almost entirely large professional institutions. They operate across chains, deploy at scale, and almost monopolize most network validation nodes:
We've long entered an era of professional validators, with very few home or personal nodes maintaining network security.
This means staking itself doesn't make the network more secure, but creates a continuous profit channel for these institutions. In other words, staking has long been decoupled from security and has become an alternative mining economy.
Hard-Working ETH ETF Investors: Not Staking Means Being Diluted by Inflation
Haseeb also mocked many ETH spot ETF investors, pointing out that their inability to participate in staking means their holdings are being "diluted" by inflation every moment, which is why many traditional financial institutions are eager to incorporate staking functionality into ETF structures:
Everyone actually knows that the profit from staking is not an additional return, but a way to protect oneself from token inflation.
He stated, "The market will gradually see through this economic illusion of benefits, and this will eventually come to an end."
Inflation Mechanism Needs Reform, Staking Definition Needs Reshaping
Facing Haseeb's critique of the PoS model, he predicts the next phase will be adjusting inflation design and reducing staking returns during a transition period:
People are beginning to realize that inflation is inevitable, but should be kept at a very low level. The role of staking should not be to entice with returns, but to maintain the minimum operational capacity of the network.
It's not hard to imagine that the design of consensus and inflation mechanisms will gradually be re-examined, and step-by-step adjustments will nurture a more robust and secure blockchain ecosystem.
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