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Hasu⚡️🤖
@hasufl
Drake and Vitalik both seem to think that disabling transfers in phase 0 can prevent the formation of a secondary BETH asset (beacon chain ETH). I disagree and predict that it will achieve the opposite.
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Justin Ðrake 🦇🔊
@drakefjustin
Replying to @hasufl and @VitalikButerin
Transfers (and withdrawals) are disabled in phase 0 in large part to avoid the formation of a "beacon chain ETH" :)
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Hasu⚡️🤖
@hasufl
Disabling transfers incentivizes the securization of BETH via staking through centralized exchanges. Those exchanges will allow users to trade in and out of BETH, which will be a significant value-add over non-custodial staking.
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Hasu⚡️🤖
@hasufl
As a result, it not only can't prevent the formation of ETH/BETH, but also incentivizes TWO dangerous precedents: 1) centralized/custodial staking 2) securitization of stake (terribly for security, introduces principal-agent problems)
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