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Autores principales: Brunetta, Carlo, Chaudhary, Amit, Galatolo, Stefano, Sala, Massimiliano
Formato: Preprint
Publicado: 2025
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Acceso en línea:https://arxiv.org/abs/2510.11065
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author Brunetta, Carlo
Chaudhary, Amit
Galatolo, Stefano
Sala, Massimiliano
author_facet Brunetta, Carlo
Chaudhary, Amit
Galatolo, Stefano
Sala, Massimiliano
contents Dynamically distributed inflation is a common mechanism used to guide a blockchain's staking rate towards a desired equilibrium between network security and token liquidity. However, the high sensitivity of the annual percentage yield to changes in the staking rate, coupled with the inherent feedback delays in staker responses, can induce undesirable oscillations around this equilibrium. This paper investigates this instability phenomenon. We analyze the dynamics of inflation-based reward systems and propose a novel distribution model designed to stabilize the staking rate. Our solution effectively dampens oscillations, stabilizing the yield within a target staking range.
format Preprint
id arxiv_https___arxiv_org_abs_2510_11065
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Stabilizing the Staking Rate, Dynamically Distributed Inflation and Delay Induced Oscillations
Brunetta, Carlo
Chaudhary, Amit
Galatolo, Stefano
Sala, Massimiliano
Cryptography and Security
General Economics
Economics
Dynamical Systems
Dynamically distributed inflation is a common mechanism used to guide a blockchain's staking rate towards a desired equilibrium between network security and token liquidity. However, the high sensitivity of the annual percentage yield to changes in the staking rate, coupled with the inherent feedback delays in staker responses, can induce undesirable oscillations around this equilibrium. This paper investigates this instability phenomenon. We analyze the dynamics of inflation-based reward systems and propose a novel distribution model designed to stabilize the staking rate. Our solution effectively dampens oscillations, stabilizing the yield within a target staking range.
title Stabilizing the Staking Rate, Dynamically Distributed Inflation and Delay Induced Oscillations
topic Cryptography and Security
General Economics
Economics
Dynamical Systems
url https://arxiv.org/abs/2510.11065