# 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. \
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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.