Solana Network & Staking - Solana's lack of slashing is noted, contributing to its Beta status [1] - The failure to cut SOL inflation benefits LSTs, yielding close to a risk-free 7% APY [1] - Looping on Juplend offers a 22% APY at 12.43x leverage, presenting smart contract risk [1] Market Dynamics & Investment Strategy - Holding naked SOL is likened to holding USD/EUR in banks without T-bill yields, implying a cost [2] - High staking yields may distort Technical Analysis (TA) due to long-term stakers earning more than indicated by the naked SOL chart [2] - The design of looped SOL is appreciated for its benefits to holders [2]

Network Updates - Solana is gradually implementing slashing functionality [1] - Solana network performance has been improved with the latest upgrade [1]

Economic Security Myths Debunked - Delegation with slashing incentivizes careful operator selection, contrary to the belief that delegation negates security [1] - Relying solely on forking for security is impractical due to the time required, necessitating economic security for pre-fork finality [2] - Economic security can be automated through a market where users directly purchase security, addressing the issue of burnt slashed funds [3] - Economic security's failure to protect against liveness attacks stems from chain design flaws, not inherent limitations [4] Proof of Stake (PoS) vs Proof of Work (PoW) - Incentivizing stake is crucial, as committees alone resemble less secure systems like Libra [5] - While current PoS reward curves are arbitrary, market-driven security pricing can emerge through mechanisms like Stakesure [6] - PoW is essentially staking via mining devices, but PoS allows for burning or redistributing misbehaving miners' stake [7] Building Secure Chains - Security pricing is essential for resource provisioning and overall chain security [8] - Understanding economic security is crucial for building self-enforcing chains, contrasting with less robust committee chains [7]

Staking & Economic Security - Staking yields should be low due to rare or non-existent slashing, as high interest for risk-free activities with slight liquidity disruptions is illogical [1] - The industry should be cautious about dismissing economic security, as increasing value on chains elevates attack incentives, and relying on social layers can lead to destructive politics [2] - Crypto-economic security aims to replace human interaction with enforced protocol rules; validators fearing slashing behave differently [3] - If a native coin isn't needed for security, it has little value, highlighting the link between coin value, incentives, and security [4] Tokenomics & Protocol Design - If security doesn't rely on incentives, the coin's value is questionable; equity issuance and stablecoin fees become viable alternatives [5] - More experimentation with slashing is needed in protocol design, balancing risk with worthwhile rewards [5] - A PoS chain with more slashing and higher inflation offers a sophisticated way to incentivize validators towards desirable outcomes, benefiting DeFi with risk-adjusted yield options [6]