DaniMo @0xdanimo - Twitter Profile

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about 1 month ago

>Validator Economics the validator incentive design on canopy is actually what makes the whole thing work long term. on most networks validators get their rewards and that's it. they have no particular reason to care whether the ecosystem grows or shrinks. their income is basically fixed as long as they keep validating. canopy flips that completely. when a new nested chain launches, validators restake their @CNPYNetwork onto it and start collecting that chain's native token rewards on top of their regular block rewards. more chains means more income streams for active validators. and here's the part that keeps everyone honest; if you don't restake onto new chains, you get diluted. the validators who are actively participating in canopy's ecosystem growth accumulate more over time and the ones sitting passively fall behind. so validators are now financially incentivized to want more projects to launch on canopy. every new chain is another opportunity for them. that alignment between validator incentives and ecosystem growth is rare and it's the kind of thing that actually keeps a network alive five years from now.

0xDaniMo's tweet photo. >Validator Economics

the validator incentive design on canopy is actually what makes the whole thing work long term.

on most networks validators get their rewards and that's it. they have no particular reason to care whether the ecosystem grows or shrinks. their income is basically fixed as long as they keep validating.

canopy flips that completely. when a new nested chain launches, validators restake their @CNPYNetwork onto it and start collecting that chain's native token rewards on top of their regular block rewards. more chains means more income streams for active validators.

and here's the part that keeps everyone honest; if you don't restake onto new chains, you get diluted. the validators who are actively participating in canopy's ecosystem growth accumulate more over time and the ones sitting passively fall behind.

so validators are now financially incentivized to want more projects to launch on canopy. every new chain is another opportunity for them. that alignment between validator incentives and ecosystem growth is rare and it's the kind of thing that actually keeps a network alive five years from now.

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DaniMo

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