E is for Economics: Incentives That Keep Networks Honest
Proof-of-Work converts electricity into security; Proof-of-Stake bonds capital to earn the right to validate. Rewards compensate work or risk. Penalties deter cheating. Which trade-off—energy cost or capital lockup—feels more responsible to you today?
E is for Economics: Incentives That Keep Networks Honest
Predictable supply creates narratives investors track, like Bitcoin halvings that cut new issuance. Scarcity stories shape behavior, for better or worse. Which supply design—fixed cap or adaptive—makes more sense for long-term stability and adoption?