THE RISKS AND REWARDS OF (RE)STAKING

Summary from the TLDR Crypto newsletter

Over $111 billion of ETH is staked, representing 28% of the total supply. Stakers are issued rewards from issuance, priority fees, and MEV. Restaking has grown to $19.4 billion on Ethereum and offers benefits like unified security and efficiency while introducing risks such as impacts on base chain security, centralization pressures, and complexities for node operators. Cosmos introduced replicated security in 2023, allowing Cosmos Hub stake to secure consumer chains and mandatorily restake ATOM.