Rationally Analyzing Shelby: Proving Incentive Compatibility in a Decentralized Storage Network

Fuente: arXiv
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Main Authors: Crystal, Michael, Goren, Guy, Kominers, Scott Duke
Format: Preprint
Published: 2025
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author Crystal, Michael
Goren, Guy
Kominers, Scott Duke
author_facet Crystal, Michael
Goren, Guy
Kominers, Scott Duke
contents Decentralized storage is one of the most natural applications built on blockchains and a central component of the Web3 ecosystem. Yet despite a decade of active development -- from IPFS and Filecoin to more recent entrants -- most of these storage protocols have received limited formal analysis of their incentive properties. Claims of incentive compatibility are sometimes made, but rarely proven. This gap matters: without well-designed incentives, a system may distribute storage but fail to truly decentralize it. We analyze Shelby -- a storage network protocol recently proposed by Aptos Labs and Jump Crypto -- and provide the first formal proof of its incentive properties. Our game-theoretic model shows that while off-chain audits alone collapse to universal shirking, Shelby's combination of peer audits with occasional on-chain verification yields incentive compatibility under natural parameter settings. We also examine coalition behavior and outline a simple modification that strengthens the protocol's collusion-resilience.
format Preprint
id arxiv_https___arxiv_org_abs_2510_11866
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Rationally Analyzing Shelby: Proving Incentive Compatibility in a Decentralized Storage Network
Crystal, Michael
Goren, Guy
Kominers, Scott Duke
Computer Science and Game Theory
Distributed, Parallel, and Cluster Computing
Multiagent Systems
Decentralized storage is one of the most natural applications built on blockchains and a central component of the Web3 ecosystem. Yet despite a decade of active development -- from IPFS and Filecoin to more recent entrants -- most of these storage protocols have received limited formal analysis of their incentive properties. Claims of incentive compatibility are sometimes made, but rarely proven. This gap matters: without well-designed incentives, a system may distribute storage but fail to truly decentralize it. We analyze Shelby -- a storage network protocol recently proposed by Aptos Labs and Jump Crypto -- and provide the first formal proof of its incentive properties. Our game-theoretic model shows that while off-chain audits alone collapse to universal shirking, Shelby's combination of peer audits with occasional on-chain verification yields incentive compatibility under natural parameter settings. We also examine coalition behavior and outline a simple modification that strengthens the protocol's collusion-resilience.
title Rationally Analyzing Shelby: Proving Incentive Compatibility in a Decentralized Storage Network
topic Computer Science and Game Theory
Distributed, Parallel, and Cluster Computing
Multiagent Systems
url https://arxiv.org/abs/2510.11866