Cryptoeconomic Models

Definition ∞ Cryptoeconomic models are frameworks that utilize economic incentives and game theory to design and secure decentralized systems. These models aim to align the interests of network participants, such as users, validators, and developers, towards collective goals like network security and honest participation. They are foundational to the operation of many blockchain protocols.
Context ∞ The ongoing evolution of cryptoeconomic models is a primary driver of innovation in decentralized finance and blockchain governance. Current discourse often centers on the sustainability of tokenomics, the robustness of consensus mechanisms against collusion, and the application of these models to new use cases. Analyzing these models provides insight into how decentralized networks maintain integrity and incentivize desired behaviors.