Zero-Revenue Barrier

Definition ∞ A zero-revenue barrier refers to a condition or design choice within a system where there is no minimum requirement for generating income or profit to participate or operate. This can lower the threshold for entry, allowing more participants to engage with a protocol or service without immediate financial pressure. Such barriers are often implemented to promote network growth and decentralization.
Context ∞ The concept of a zero-revenue barrier is frequently discussed in relation to the initial phases of blockchain protocol development and the design of decentralized applications aiming for broad user adoption. Debates often revolve around whether such a strategy is sustainable long-term or if it creates potential vulnerabilities for network security or economic stability. The introduction of new fee structures or governance models can alter or remove these initial barriers.