The Sustainability Checklist

  • Low inflation, <1%
  • Predictable security budget over the long term (note: hard caps may be dangerous)
  • Strong value accrual to the base asset, preferably canceling out most of the inflation (note: high deflation is an anomaly that implies undervaluation, and will be corrected by the markets in the long term)
  • Solutions like PBS (proposer-builder separation) necessary so most MEV is captured by the base asset
  • Do the above, and it’ll gain monetary premium
  • Monetary premium → higher economic security, more stable settlement layer and base asset → more demand and monetary premium virtuous cycle
  • Validity proofs, statelessness, and fraud proofs for the execution layers; data availability proofs for the data layer. This may not sound economic, but to scale to millions of nodes this may be necessary for economic sustainability.
  • Very wide token distribution
  • Easy to verify transactions (statelessness, validity proofs)
  • Very wide network of nodes, unsubsidized by centralized entities, with geographic, software (incl. clients) and hardware diversity
  • Robust and well-coordinated social layer with concrete plans for emergency situations like social forks
  • Reasonable transaction fees (~$0.01)
  • Not too difficult to produce blocks, with a long tail of dozens of thousands of indie stakers
  • Permissionless block building with PBS
  • [Addendum] Enshrined staking derivative
  • Multiple robust client implementations
  • Validity and fraud proofs, statelessness, data availability proofs — these are critical ingredients where the social, economic, and technical collide
  • State expiry and history expiry
  • Multiple solutions for accessing expired state and history (also social)
  • Ossified settlement layer
  • Parallel transaction execution

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Rants and musings on blockchain tech. All content here in the public domain, please feel free to share/adapt/republish.

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Polynya

Rants and musings on blockchain tech. All content here in the public domain, please feel free to share/adapt/republish.

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