This is the idea of an algorithmic curve that sets a cap on the capital efficiency for block rewards and fees for staking tokens at a certain amount staked and redistributes rewards down the curve. Theoretically this sets an upper bound to the game theory of holding tokens, and dis incentivizes centralization. There are some issues with protecting against sybil attacks, so over time to implement this idea there needs to be an additional incentive around proof of identity. This could make the game theoretical optimum for receiving block rewards to have a certain amount of regen as well as having a verified identity.
robert-zaremba
commented
3 years ago
This is the idea of an algorithmic curve that sets a cap on the capital efficiency for block rewards and fees for staking tokens at a certain amount staked and redistributes rewards down the curve. Theoretically this sets an upper bound to the game theory of holding tokens, and dis incentivizes centralization. There are some issues with protecting against sybil attacks, so over time to implement this idea there needs to be an additional incentive around proof of identity. This could make the game theoretical optimum for receiving block rewards to have a certain amount of regen as well as having a verified identity.