Validator compensation is the remuneration provided to entities that validate transactions and secure a blockchain network, particularly in proof-of-stake (PoS) or delegated proof-of-stake (DPoS) consensus mechanisms. This compensation typically comes in the form of newly minted tokens or transaction fees, incentivizing validators to act honestly and maintain network integrity. It is a critical component of a blockchain’s economic security model.
Context
The structure and sufficiency of validator compensation are ongoing topics of discussion, influencing network security, decentralization, and the economic sustainability of blockchain protocols. Current debates often center on the optimal balance between rewards and inflation, as well as the potential for validator collusion or centralization due to disproportionate rewards. Future developments may include adaptive compensation models that adjust based on network participation and security needs.
This research introduces Execution Tickets, a protocol-integrated mechanism to distribute Maximal Extractable Value, fostering a more equitable and robust blockchain economy.
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