The developers of Ethereum blockchain have been aiming for Proof of Stake (PoS) for a very long time. As the main developers, Serenity considers the iteration of the ETH blockchain to be based on staking instead of mining.
Following many failed attempts with the blockchain upgrade by the name Constantinople, all caused by misalignment of consensus and bugs finally went live a week ago. This upgrade brought with it changes in the ETH virtual machine, lowering the fees in addition to a 33% difference in the amount issued to ETH for every block.
Despite the major purpose of this upgrade is to boost the short-term sizing opportunities of Ethereum, Constantinople nudges this project a step further towards the adoption of Serenity.
Delphi Digital, which is based in New York, voiced their reservations regarding the feasibility of staking, particularly with regards to the status quo that have led to a severe decline in the ETH value. The Delphi team lead by Tom Shaughnessy observed that the output through staking is much too low, without even considering the operational costs incurred by a running server.
The projected yields that will be offered to validators will be at a maximum of around 18.19% APR. This would be correct for staking of 5,000,000 Ether, despite the soaring transaction fees.
The American group observes that staking will turn out to be a severe loss, even worse than the levels experienced by Bitcoin miners in December 2018. They came to this conclusion by taking into account the operational costs of running the machinery or cloud server for validation.
Ryan Adams, founder of Mythos Capital states that according to the Delphi chart, the annual output would be a negative 26%, saying that Ethereum does not need to have great value in order for it to work.
