Tokenized staked ETH is going to replace ETH itself.
Ethereum is finally set to shift from a proof-of-work infrastructure to proof-of-stake. The end result of this upgrade will effectively take ETH out of circulation, replaced by a tokenized version of itself.
Tim Ogilvie is the CEO of Staked, which runs staking infrastructure for institutional investors, exchanges, custodians, and wallets. He is appearing at CoinDesk’s invest: ethereum economy event on Oct. 14, at 10.30 a.m. E.T.
In almost every instance that you can imagine people wanting to hold ETH, it will be preferable to hold a staked version rather than the original real asset. This tokenized version of ETH will perform all the same functions of ETH, but it will also be more valuable, because it will earn staking rewards and can simultaneously do other things. For example, it could be used as collateral in Compound or supplied to a Uniswap liquidity