Definition ∞ Validator set economics refers to the financial incentives, costs, and strategic considerations that influence the behavior and composition of the group of entities responsible for validating transactions in a proof-of-stake blockchain. This includes staking rewards, slashing penalties, and hardware or operational expenses.
Context ∞ Understanding validator set economics is crucial for designing sustainable and secure proof-of-stake networks. Optimizing these economic parameters helps ensure a decentralized, robust, and performant validator set, which is a continuous area of research and protocol adjustment to maintain network integrity and prevent centralization risks.
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