The target participation ratio specifies the desired proportion of eligible network participants actively contributing to a blockchain’s security or governance mechanisms. This metric is particularly relevant in proof-of-stake systems, where a certain percentage of staked tokens or validators is necessary for optimal network operation and decentralization. Achieving this ratio helps maintain network health. It influences security and consensus.
Context
News often refers to the target participation ratio when discussing the health and security of proof-of-stake blockchains or the effectiveness of staking incentives. Deviations from this target can signal potential vulnerabilities or a lack of engagement from the community. Protocol adjustments often aim to encourage participation to meet or exceed this crucial threshold.
This dynamic mechanism, inspired by EIP-1559, enshrines a variable MEV extraction rate to formally balance user and validator incentives for system robustness.
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