A block proposer incentive is the reward offered to a network participant for successfully creating and proposing a new block of transactions to the blockchain. This incentive typically comprises newly minted tokens and transaction fees collected from the block’s contents. It serves to motivate participants to maintain network operations and secure the ledger.
Context
In Proof-of-Stake systems, block proposer incentives are crucial for encouraging validators to stake their assets and participate honestly in block production. The design of these incentives is a key aspect of a blockchain’s economic security model, balancing network decentralization with validator profitability. News frequently covers adjustments to these incentive structures and their impact on network stability and participation rates.
A novel DAG-based ledger function discards block content during tie-breaks, fundamentally removing the MEV incentive that destabilizes consensus protocols.
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