Eth 2.0 staking question

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Eth 2.0 staking question

Based on the current rewards ( you can generate 8.32% in returns per year for staking 32 eth.

However the returns don't compound directly onto the validator that generates them. In order to compound the returns, you need generate 32 eth worth and start a new validator. This design seems a little odd to me.

It means that at current returns if you had 385 eth you could compound the returns every year. At 12 times that you can compound every month. I don't understand this decision as it makes the rich get richer by design. Especially given that the returns decrease the more eth that is staked, so after each compounding the rich get a larger share of a decreasing reward.

Does anyone know why this decision was made, versus simply allowing returns to compound on the validator that generated them (which seems fairer for all)?


submitted by /u/moqtada2
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