Vitalik Buterin, the creator of Ethereum, has suggested that users will receive greater rewards for the ETH that they stake than what was initially proposed. On GitHub, Buterin posted a comment that explains his proposed changes. He also includes a chart that indicates how many new ETH tokens will be generated and distributed to stakers once Ethereum 2.0 goes live.
This means that staking could be more profitable than previously expected (although profits will also be influenced by the total amount of ETH staked by all users). Yet since staking reward tokens must be created anew, Ethereum could see greater inflation as well. As such, rewards and inflation must be balanced against one another.
Targets For Staking
Justin Drake of the Ethereum Foundation believes that Buterin’s proposal is reasonable assuming that Ethereum targets a total of 32 million staked ETH. This would set base inflation to 1% per year and base return to 3.2%. Drake adds that if less than 32 million ETH is staked, it would be reasonable to double…