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ETH PoS mortgage incentive scheme announced, up to 18.1%

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Ethereum will use higher mortgage reward metrics after deploying proof of interest (PoS).

The BlockreportsVitalik Buterin, founder of ethereum, was recently inGithubEthereum will use higher mortgage reward metrics after deploying proof of interest (PoS), the post said.

V god listed the estimated annual rate of return based on the number of different verifications.

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For example, if a million ether tokens are pledged, a maximum of 181,019 ether deposits can be issued each year, with a maximum annual return of 18.1%.

The chart shows a ceiling of 134,217,728 ether and 2,097,152 new ether issues per year for a return of 1.56%. To be sure, this does not include transaction fees, so staker's earnings could be a few percentage points higher.

Ethereum foundation researcher Justin Drake followed up on V god's Github post and explained the rationale behind the proposal.

Justin Drake writes: "targeting 2^25 ETH(about 32 million ETH) in the long term is the right thing to do because of its strong security.In that scenario, underlying inflation would be around 1 per cent and underlying returns would be around 3.2 per cent. "

As a result, ethereum has made an ambitious bet on 32m ethereum COINS, and an inflation rate of 1 per cent would rival bitcoin's current 3.94 per cent.

So far, the response to the proposal on Github and Reddit has been mostly positive. Earlier, ethereum community members had expressed concerns about the attractiveness of ethereum's initial proof of interest reward structure when considering the opportunity cost of loans to entities such as BlockFi, which currently has a 6.2 per cent ether deposit rate, and the cost of the hardware needed to maintain the validator node.

The following figure shows the incentive hypothesis before adding the mortgage reward:

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