Improving Capital Efficiency of Staking

Proof-of-stake (PoS) has become the major consensus mechanism for decentralized blockchains to achieve distributed consensus. Staking in a PoS network provides an economic guarantee to network security, where security mainly refers to network liveness, transaction finality and correctness, and censorship resistance (i.e., level of decentralization).

While the utility and effectiveness of staking depend on the design of the PoS mechanism, the total value staked can be a proxy indicator of the quantified security of a network. Using this metric, not surprisingly, Ethereum is by far the most secure PoS network with $21bn ether staked.