This seems to be the crux of the article, and it’s fundamentally wrong. First of all, there is no such thing as a financial instrument where one party loses expected value and no one gains, unless coins are being burned, and here no coins are being burned, so the 21% loss clearly can’t be correct. But second, selling a put option has the property that if the asset falls in price, you lose the difference, and if it gains in price, you gain nothing; here, that is not true, because if ETH gains in price while it’s locked you *do* gain. So all it really is is 4 months of forced exposure. If you really want to, if you have other ETH outside the Casper bond you can hedge by temporarily converting it to DAI. Finally, the primary target market for Casper validation is long-term hodlers, who feel fairly little disutility from hodling anyway.

> Question: What is the plausibility of a Proof of Stake system with a required Withdrawal Delay?

It would inevitably suffer from nothing-at-stake flaws.

Source and More information: This seems to be the crux of the article, and it’s fundamentally wrong.

Author: Vitalik Buterin