# Arithmic Network's Staking Model One of the dominant narratives in crypto this cycle has been staking and restaking via protocols like EigenLayer. The move towards a dependable yield-based return has been an organic economic stabiliser for Ethereum and related networks. This evolution was inevitable and has evolved organically without a conscious goal to make networks aligned with incentives. What does network aligning mean? In this case, it denotes that yield or the return on a user’s stake which was previously a by-product of a robust consensus protocol is now rather a fundamental incentive mechanism that ties all network participants together. Does this mean that contemporary blockchain networks are misaligned due to fractured incentives? We claim that they are indeed. Most Layer-1 and Layer-2 networks today have misaligned incentives which result in fractured relationships. \ \ In the following subsections, we elaborate on the problem of fractured incentives in networks and the model we use to align various network participants to create a novel staking paradigm for the Arithmic Network. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://arithmic-labs.gitbook.io/arithmic-documentation/arithmic-networks-staking-model.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.