Economic Security Questions Related to Serenity


Per the latest roadmap, it seems clear the PoW Eth Chain (Eth 1.0) and the Beacon Chain (Eth Serenity) will run in parallel for some time. It seems there will be economic security ramifications while operating in this split-brain mode.

For instance, have we given thought to the following?

  1. If only unidirectional transfer of ETH to the Beacon Chain is available do we expect two separate assets trading on exchanges at different spot prices–an Eth 1.0 coin and an Eth 2.0 coin? What are the ramifications of this on economic security, for dapps, for validators?

  2. After ETH is deposited from ETH 1.0 mainchain to beacon chain for the purposes of staking, can it be unstaked, moved to an exchange and sold? If so, will unstaking and transfer of Eth be available in Phase 0 or a later phase? If not, does this effectively mean Eth deposited into the Beacon chain is illiquid until Phase 2? What are the ramifications?

  3. Assuming Eth 1.0 PoW chain continues to exist for some time in parallel with Beacon Chain, how will the block reward system in Eth 1.0 work? How long will block rewards continue to be issued on the PoW chain? Is the total Eth supply increase the sum of Eth 1.0 + Eth 2.0 rewards in this dual chain operating model? Is it expected that economic security will decline on the Eth 1.0 PoW chain over time, at what rate?