The Economics of Blockchain Protocols | Primoz Kordez – Medium

Individuals can be included in various roles in the system, and the protocol is set in such a manner that these individuals are rewarded or punished according to their completion of tasks. This means that there is a symmetry or a so called “incentive discentive model” — beside receiving a reward for a successfully completed role, an individual can also be punished by having its staked cryptocurrency “burned”. Whenever possible, the protocol evaluates an individual’s contribution independently and rewards or punishes them accordingly; when the protocol does not have this ability, this decision is left to the market.

Source: The Economics of Blockchain Protocols | Primoz Kordez – Medium

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