Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 23, 2023 erstellt
Description:
With the switch to proof-of-stake, Ethereum has implemented fundamental changes to its monetary and fee policies. This paper studies the money supply, fees, and prices under this new regime within a dynamic macro finance model. The model's long run properties are characterized analytically. The fraction of staked ETH is shown to depend on a single parameter representing the utility value of using ETH relative to the value of computational effort on the network. The market capitalization in terms of the dollar numeraire is shown to be invariant to the staking reward factor. For a preliminary quantitative analysis, the model is calibrated with the short sample of available price and fee data. The aggregate money supply in the model is stationary, but mean reversion after shocks is extremely slow. The share of ETH staked in the long-run is estimated to be 26% implying a long-run money supply of about 62 million ETH. The potential welfare gains from alternative and more activist staking yield policies are likely to be unpredictable and small. However, they can have first-order effects on the volatility of the staking share