Search arXiv⌕ Search
Home/Archive/arXiv

arXiv · 2503.14385

Towards a Formal Framework of the Ethereum Staking Market

Juan Beccuti·Thunj Chantramonklasri·Matthias Hafner·Nicolas Oderbolz
View original source ↗Read source document ↗Export metadata ↓

Abstract

This paper examines how various categories of Ethereum stakers respond to changes in the consensus issuance schedule, and the potential impact of such changes on the composition of the staking market. To this end, we have develop and calibrate a game-theoretic model of the Ethereum staking market, incorporating strategic interactions between various staking agents. Our findings suggest that solo stakers may be more sensitive to variations in staking rewards than ETH holders using centralized exchanges or liquid staking providers. This increased sensitivity is driven not only by the cost structure of solo staking, but also by the competitive dynamics between different staking solutions in the market. When faced with a downward-sloping issuance schedule, staking agents compete for limited staking yields, and their choice of staking supply affects the revenues of other stakers. Therefore, the presence of other staking methods with access to MEV revenues and other DeFi yield sources when staking, as well as inattentive stakers, puts competitive pressure on solo stakers. Consequently, our model predicts that a reduction in issuance is likely to crowd out solo stakers. We present preliminary empirical evidence to support this result, using an instrumental variable estimation approach to estimate the yield elasticity of staking supply for different staking categories.

Explore related subjects

econ.GNq-fin.EC

Keep this discovery

Explore connections, maps & timelines

BibTeXRIS

Juan Beccuti, Thunj Chantramonklasri, Matthias Hafner, Nicolas Oderbolz. 2025-07-20. Towards a Formal Framework of the Ethereum Staking Market. https://arxiv.org/abs/2503.14385

Cite the original work for its findings. Save a collection to share your selection of sources.

KEEP EXPLORING

Related papers

arXiv2026

Local Media and the Shaping of Social Norms: Evidence from the Ebola outbreak

Media's influence on norms and behavior is widely recognized. Less is known about the role played by media being local. I examine this in a high-stakes context, the Ebola outbreak in Guinea. I exploit quasi-random variation in access to radio and the timing of a public-health campaign aired on community radio. I find that 12-17% of Ebola cases could have been prevented if places with access to a neighboring community radio station had instead had their own. Impacts are driven by radio being local rather than by ethno-linguistic belonging. Local media facilitates coordination in behaviors observed and sanctioned locally.

econ.GN↗
arXiv2026

Productivity Shocks and Input Misallocation: A Decomposition

This paper asks how much input misallocation productivity uncertainty generates and at which stage of input decisions it arises. I separate revenue productivity by when each component is revealed and trace each into the gap between an input's marginal revenue product and its price. In six European countries, shocks revealed after an input is committed account for 20 percent of capital gap dispersion and 5 percent of labor gap dispersion. An unanticipated one percent rise in productivity raises the capital gap by 0.92 percent and the labor gap by 0.19 percent, because most of the shock passes into the wage.

econ.GN↗
arXiv2026

When Do Type-Specific Wages Buffer Distributional Incidence in TANK?

When do relative wages buffer the unequal incidence of aggregate shocks? I derive a consumption-gap decomposition and a present-value condition for partial offset in a TANK model. An extension separates wage-setting demand elasticity from substitution between labor segments and allows each segment to contain both financial types. With a zero inherited wage gap and a same-sign discounted wedge, substitution above one gives offsetting earnings reallocation; substitution below one gives amplification. The channel disappears when financial types have identical segment exposure. Numerical experiments assess these mechanisms, shock persistence, policy feedback, and aggregate-IRF matching. In the nested perfect-alignment monetary benchmark, the peak consumption gap is about two-fifths smaller under type-specific wages than under the common-wage closure. These are conditional model comparisons, not empirical effect estimates or welfare rankings.

econ.GN↗