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I don't know how to parse this.

The fees are larger than the amount staked?

The fees, when realized into gains, are worth more than the cost to run the validation? Are the validators converting back to pay for their costs? Or paying for them some other way?

Does it stay profitable if ethereum drops to 1% of its current trading value?



When people pay fees for transactions most of that fee is burnt.

Blocks have a fixed amount of rewards given to the validator that created them and the validators that attest it is valid.

When more fees are being burnt than Ethereum issued in blocks it is deflationary. It is deflationary at ~16 Gwei and fees have been higher than this for a while now.

Validators cost very little to run, they're usually NUCs that use 20w, the main cost is the Ethereum you have to stake.


That would mean that number of total ETH drops. Is that true?


Yep that's what the main number at the top of https://ultrasound.money shows.




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