Issuance Issues — Subsequent Soliloquy

Mike Neuder's post continues his "Issuance Issues" series on Ethereum's staking issuance, asking how real yield might be higher in equilibrium despite reducing issuance. He builds the analysis from the current inverse-root issuance curve, f(x) = 2.6 · 64/√x, using an approximate circulating supply of 120 million ETH, where 30 million ETH staked implies about a 3.0% nominal yield and about 2.3% real yield. He then adds a hypothetical staking supply curve, s(x) = 2·10⁻⁶√x, which he states is purely illustrative. The intersection of the two curves gives an equilibrium of 83.2 million ETH staked, which he says implies a real yield of about 0.05%.