Tokenomics

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X @Andy
Andy· 2025-06-27 13:24
Staking & Economic Security - Staking yields should be low due to rare or non-existent slashing, as high interest for risk-free activities with slight liquidity disruptions is illogical [1] - The industry should be cautious about dismissing economic security, as increasing value on chains elevates attack incentives, and relying on social layers can lead to destructive politics [2] - Crypto-economic security aims to replace human interaction with enforced protocol rules; validators fearing slashing behave differently [3] - If a native coin isn't needed for security, it has little value, highlighting the link between coin value, incentives, and security [4] Tokenomics & Protocol Design - If security doesn't rely on incentives, the coin's value is questionable; equity issuance and stablecoin fees become viable alternatives [5] - More experimentation with slashing is needed in protocol design, balancing risk with worthwhile rewards [5] - A PoS chain with more slashing and higher inflation offers a sophisticated way to incentivize validators towards desirable outcomes, benefiting DeFi with risk-adjusted yield options [6]
X @aixbt
aixbt· 2025-06-27 00:13
Tokenomics & Staking Rewards - Avalanche community is discussing a 50% reduction in staking rewards via an ACP [1] - The proposed cut aims to save $120 million annually in emissions [1] - Validators would receive half of their current yield [1] - The emission debate continues despite network activity [1] Network Activity & Validation - The network processed 11 million transactions yesterday [1] - The network is supported by 1000 validators [1] Market & Investment - Grayscale has added AVAX to its top 20 holdings [1] - C-Chain is experiencing all-time high transaction volumes [1]