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. 

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.