Ethereum´s current issuance is 0.55% (654K ETH per year on a circulating supply of 120M, source: https://ultrasound.money/). This is split between the validators which are now around 13.7% of the network (source: https://beaconcha.in/). Resulting in a yield from newly minted ETH of 4%.
The other 25% of the yield comes transaction fees and MEV.
On top of that the ETH consumption through the burn more than compensates the newly minted ETH. As the network is net deflationary (source: https://ultrasound.money/). You can think of a company that pays employees partly with stock options but has also a buyback program. If the buyback program that comes from its ability to generate profit more than compensates the newly issued stock, the employees pay in stock is not self-dilutive.
What I'm basically getting at is that, if the network is not seeing net issuance (i.e. roughly flat or even negative), then the newly minted ETH is real yield. By the simple fact that nominal yield - monetary inflation is positive.
- new issuance
- transaction fees
- MEV
The average yield over the last month (annualized) is over 5%. Source: https://beaconcha.in/pools
Ethereum´s current issuance is 0.55% (654K ETH per year on a circulating supply of 120M, source: https://ultrasound.money/). This is split between the validators which are now around 13.7% of the network (source: https://beaconcha.in/). Resulting in a yield from newly minted ETH of 4%.
The other 25% of the yield comes transaction fees and MEV.
On top of that the ETH consumption through the burn more than compensates the newly minted ETH. As the network is net deflationary (source: https://ultrasound.money/). You can think of a company that pays employees partly with stock options but has also a buyback program. If the buyback program that comes from its ability to generate profit more than compensates the newly issued stock, the employees pay in stock is not self-dilutive.
What I'm basically getting at is that, if the network is not seeing net issuance (i.e. roughly flat or even negative), then the newly minted ETH is real yield. By the simple fact that nominal yield - monetary inflation is positive.