Staking in Crypto

Staking cryptocurrency assets can serve a purpose for projects - for example, raising liquidity for a decentralized exchange. And I approve of that kind of use, because it serves a purpose.

Unfortunately the use of staking in many projects amounts to nothing more than a complicated Ponzi scheme (and I don't use that phrase lightly).

I suspect that it is a decision that is often just not thought through - the project founders are enthusiastically deciding, "Hey, let's implement a DAO! And let's provide staking!" without considering the ramifications.

More on this in the episode.