Reserve Depletion and Security Runway in Proof-of-Stake Systems
Many blockchains pay the participants who validate transactions from two sources: transaction fees and a built-in token reserve. Early on, fees may not be enough on their own, so the reserve bridges the gap. This paper builds a framework to determine whether a given reserve will last long enough for fee income to take over, and shows that the answer depends not just on how large the reserve is but also on token price and network activity at any given moment.
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