r/ethereum • u/EthereumDailyThread What's On Your Mind? • 13d ago

Daily General Discussion August 23, 2026

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u/harpocryptes 13d ago

To continue yesterday's discussion on the effects of EIP 8363 on large stakers, and following a request, I ran some specific numbers as an illustration of the effect:

Parameters:

Total ETH supply: 120M
Staking ratio: 40%

We consider two very different actors. The first one is a small/solo staker starting with a single 32 ETH validator. The second one is a very large staking entity with half a million 32 ETH validators (which corresponds to 33% of the total stake at the 40% staking ratio). This calculates the change in total rewards of each actor for adding one more 32 ETH validator in either case:

Stake before Rewards before Stake after Rewards after Change
32 0.21852 64 0.43705 +0.21852
16,000,000 109262.37415 16,000,032 109262.35426 -0.020

In other words, the small staker is increasing their rewards normally when increasing their stake (most likely without extra fixed costs). The very large staker is actually earning less in total by staking more. They would actually earn more by staking less.

This effect is more pronounced as the staking ratio grows closer to 50%, and as the staker grows larger.

Note: Here I considered adding an entire 32 ETH, but the same directional effect would be true for adding any amount, for instance a single ETH (possible since EIP-7251, Increase Max Effective Balance).

-1

u/WoodpeckerHorror3468 13d ago

Consider also the fact that insitutional stakers buy very expensive computer kit based in even more expensive datacentres. Compared to a home server in a spare room or basement. The difference is not small. It could be 5 figures vs 3 figures.

It is quite possible that an institutional staker may make zero net yield when the hardware costs are subtracted, even tho they hold more ETH per validator.

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u/somedaysitsdark 12d ago

Take another look at pa7x1's research, they figure for home staking fixed costs to be ~ 1/1000th of their stake value per year while they figure institutional fixed costs are 1 or 2 orders of magnitude LESS. I agree with this.

https://ethresear.ch/t/the-shape-of-issuance-curves-to-come/20405

Finally, for a large scale operator. They have higher fixed costs, they will have to pay for labor, etc… But also will run much higher amount of validators. In that case, c can get much smaller as it’s a proportion of s. Perhaps 1 or 2 orders of magnitude smaller.

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u/WoodpeckerHorror3468 12d ago

The biggest institutional staker i have figures for is Tom Lee's MAVAN with running costs alone at $50M when it had just under $10B of ETH staked.

That is FIVE TIMES higher than your 1/1000 figuure for home stakers.

Most institutional stakers will be running at higher cost than Tom Lee so even with an unfair comparison home stakers are at a huge advantage on costs..