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economic-research

This repository is dedicated to upstream analysis, simulation and other quantitative research that inform the design/parametrization of the protocol’s economic mechanisms. These mechanisms include:

  • Rewards/subsidies (Issuance schedules, reward coefficients, reward eligibility, etc.)
  • Fees & Pricing (Pricing structure, service units, free market constraints, etc.)
  • Staking (Min. stake, wind-downs, etc.)
  • Disincentives (Slashing conditions, penalty calculation, availability, etc.)
  • Delegation (Pools, delegationbots, etc.)
  • Staker selection (Sampling algorithms, preference menus, reputation, etc.)

Note that some of these mechanisms will be global (apply to all Threshold services), while some will be custom (apply to each modular service differently).

Discussions and deliberations – on the forum or elsewhere – that pertain to protocol economics may link to public code and empirical results hosted here, such that all stakeholders may view the ‘working’ that supports certain design choices. This transparency is of particular importance when a design seeks validation from the Token Holder DAO – i.e. the majority of future upgrades involving economic changes.