Rollup Economic Model

Definition ∞ A rollup economic model defines the incentive structures and cost mechanisms that govern the operation of a Layer 2 rollup scaling solution. This includes how sequencers and provers are compensated, how transaction fees are structured, and how security deposits and penalties are applied to ensure honest behavior. It aims to create a sustainable and efficient environment for off-chain transaction processing.
Context ∞ The rollup economic model is a central area of development, as optimal incentives are crucial for the long-term health and decentralization of Layer 2 networks. Debates often focus on balancing profitability for operators with affordable transaction costs for users and maintaining robust security guarantees. Future research will likely explore dynamic fee adjustments, MEV redistribution, and innovative staking mechanisms to refine these economic models.