Dear Stader community!
Stader’s new LSD is designed to help democratize $ETH node operations by lowering the entry barriers. Here’s ETHx Tokenomics in a nutshell for you.
Ethereum’s north star is decentralization. It can only be achieved by attracting new node operators to join. Yet, unfortunately, there are high capital requirements to start staking solo (32 ETH), & with decentralized LSDs, not just for the $ETH bond (~16 ETH) but also in their governance tokens (worth 1.6 $ETH), making it harder for most permissionless NOs, given the higher volatility of governance tokens. That means only a fortunate few can indeed run an $ETH node. That’s until now.
Introducing $ETHx Tokenomics. An LSD meticulously designed to help democratize $ETH node operations. How? Here’s the $ETHx design backstory:
There are 2 main roadblocks in $ETH’s node operations:
1. Expensive $ETH bond requirements for solo staking or LSD alternatives
2. Highly demanding governance tokens requirement with LSDs
These are stopping $ETH from expanding its decentralization. That’s where ETHx comes in!
To run an ETHx node, you’ll only need: 4 ETH bond requirement (the lowest in the ecosystem) + 0.4 ETH worth in Stader’s governance token, $SD (4x lower than other protocols)
There’s more, we’ll be launching another product upgrade soon! It’ll empower node operators who find the 0.4 $ETH worth of $SD requirement to be high too. It’ll be a win-win solution. You see at Stader, we believe $ETHx will enable a wider base to participate and help decentralize $ETH
That said, here’s ETHx Tokenomics: here
Looking forward to your feedback!
Let’s grow together!