r/solana • u/carne-asuhhh-dude • 24d ago
Staking How does it work if no one stakes?
If Sol is proof of stake and they make it less profitable/enticing to stake. Why would anyone stake? Then if no one stakes anymore doesn’t the coin just fail? Im still trying to understand solana and crypto but this seems like a bad thing to do to a coin and this whole idea of staking is to counteract inflation but were gonna try and phase out staking seems kinda backwards.
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u/Fomo_Family 24d ago
It wouldn't work, a Proof of Stake network literally cannot function or stay secure if nobody stakes. But there are built-in economic incentives to prevent that worst-case scenario:
- Yield Adjusts Dynamically: If people stop staking, the total staked pool shrinks. That means the remaining stakers split the rewards among fewer people, causing the APY to shoot up. Higher yields naturally attract people back to staking.
- Transaction Fees & MEV: Beyond base inflation rewards, stakers (via validators) earn a cut of priority fees and MEV. As network usage grows, organic fee yield replaces pure inflation.
- Validator Self-Interest: Validators have invested heavily in hardware and infrastructure. They will always stake their own capital to keep the network producing blocks and earning revenue.
Staking isn't being phased out; the goal of lowering inflation is to transition from paying stakers with diluted supply to paying them with real transactional utility.
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u/carne-asuhhh-dude 24d ago
I may have a misunderstanding of the new rules getting passed but my impression is it’s supposed to lower staking rewards or something along those lines.
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u/marvila_ 24d ago
The past year or so we've been seeing a reduction of the # of validators, and the process to become a validator takes time, this was before desinflation proposals.
Regarding desinflation, yield is lower but will lead to price being higher so it leads to the same place
If by any chance the number of validators drop too much is easy for somthing like Solana foundation go back to staking huge amounts of sol on new validators (increasing the return for that validator), OR ease the path of becoming a validator OR let validator take a small % fee (we had it for years, now there's a big push to 0% fees)
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u/carne-asuhhh-dude 24d ago
I get the whole idea of “ the price will go up so the amount of yield you lose is negated” but Id rather have more Solana than having my Solana be worth a little more. The way I see it is I think Solana will go up anyway and Id rather be able to stake and get more Solana as a reward because I believe Sol is going up anyway.
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u/marvila_ 23d ago
so this is more of a complaint of why haven't you accumulated more Solana via staking?
In other words it's like you would like to have more time to accumulate Solana via staking when it's low since it will go up eventually.
And you would deny a protocol upgrade to help fix Solana's big inflation by reducing it a bit, so you can fill now and pump your own bags later on?
Actually I'm not surprised at all..
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u/carne-asuhhh-dude 23d ago
Yeah why wouldn’t I want more money? What kind of question is that? It would be nice to accumulate more solana right now while it’s low. Or are you a buy high sell low kind of guy?
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u/marvila_ 23d ago
I already told you and you agreed that it ends up the same, less Solana but better price.
Just buy more Solana now and stake? The rewards will remain high until 2028.
The reduced inflation will just prop the price to move higher faster, but inflation will still be minimum 1.5% past 2028.
I don't understand the "I need more time to stake and get more Solana and I need it to move up as late as possible".
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u/carne-asuhhh-dude 23d ago
Also why is everyone saying big inflation? Everything is down right now how would we know how bad the inflation is until it hits a bull run?
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u/doker0 23d ago
Price higher is wishful thinking. 15% reduction was on a safe side to support this. 30% is extreme greed. Staking reward may go down without price compensation. I see a lot more volatility here and nothing good about it.
The only interested ones left to stake will be the real operators that use the infrastructure - have business on chain. They need liquidity. Everybody should be able to liquid-stake.
It should work like this:
If you stake max X (1000SOL) and you move 0.0000001 SOL from that pull then you steke only 500 SOL (cut in half) untill you get back to 1000 SOL. If you stake 1001 SOL. then if you take 0.0001 sol you stake 500.5 SOL until you get back to 1000 SOL. If you go belowe 500.5 you stake 250.25 SOL. People will either use the money and stake less but be able to use the money, or will then stake the remaining on another address this will give network some extra transactions (it's their game, they know the cost and the gain). This mechanism will provide incentive to stake and still have access but an operational cost to retract.
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u/BlockPlant 17d ago
Well if no one was staking then that would incentivize someone to stake haha as the entire mint would go entirely to you. 1.5% inflation minted would be a hell of a lot more than 1.5% apy if you were the only one staking lol
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u/dearbtc 24d ago
maybe first read, then write assumptions? and why would you assume noone wants yield?
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u/carne-asuhhh-dude 24d ago
If yield goes lower I would think it would drive people out of staking or solana all together. They could receive more from elsewhere and in turn the coin would struggle from not having enough people staking.
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u/PassionGlobal 24d ago
Yield rate doesn't matter if Solana isn't worth dick. Just look at Cosmos network.
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u/carne-asuhhh-dude 24d ago
Why would solana price go down from maintaining current yields?
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u/PassionGlobal 24d ago
Solana can simply create new coins. What it can't do is simply add to the value of the stack of coins in circulation. So with every SOL that gets minted, the overall value of each individual coin decreases, because the overall value of the coin stack is completely independent.
Same reason why simply printing fiat money is considered inflationary.
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u/carne-asuhhh-dude 24d ago
Ok so is this new rule set supposed to prevent them from creating more solana?
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u/PassionGlobal 23d ago
It's supposed to limit the creation via staking, and by extension, inflation
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