REPORT

January 3, 2025

Proof-of-Stake Cryptoeconomics Design: A General Framework of Modeling and Evaluation

Proof-of-Stake's ‘plutocratic’ nature requires intricate economic design to ensure resilience and safety, yet no comprehensive framework exists to analyse these complex interactions. This research establishes a generalizable, transferable PoS framework encompassing protocol reserves, treasury, reward pot, transaction fees, and staking rewards. 

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Applied to major protocols Hedera and Cardano, the dynamic model reveals protocol trajectories including treasury evolution, reserve balances, and decentralisation levels. The framework serves as a handbook for investigating staking behaviours and reward dynamics across various PoS-based systems.

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