>! Since staking rewards, by means of the analogy of a steady inventory break up, are non-Cantillon, the one inefficiency within the course of resulting in wealth inequality or distortion of the market is the revenue margins between the minimize taken by staking swimming pools and the price to run the validators. We will put an absolute higher certain on the Cantillon revenue by assuming the price of working a staking pool is zero.
>! The max doable Cantillon revenue from Ethereum staking is at present 0.6% of all staked ether. With 7.8% of the at present provide of ether staked this places the utmost restrict at 0.05% per yr—about $17.5 million annualized. On a market-cap adjusted foundation, the revenue extraction on this worst case is lower than 1% of the three-year common revenue extraction by bitcoin miners.
>! As the availability of staked ether rises the theoretical Cantillon revenue will improve however stay bounded by the unfold between rewards and staking pool payouts. Even when each ether token was staked in a staking pool and all of the swimming pools have been capable of function with out price without having to compete on charges previous the present stage, the market cap adjusted Cantillon revenue would nonetheless be smaller than that of bitcoin miners.
https://dataalways.substack.com/p/pos-cantillon-effect?s=w
