@r4729s
How to balance multiplier high enough for slashing and low enough for token supply health?
The goal is to minimize total token emissions subject to the constraint of maintaining a sufficient level of stake for security. This involves: 1. Quantifying Security Need: Define a target level of total stake (e.g., a multiple of TVS) and a target number of high-quality operators. 2. Modeling Operator Response: Estimate how the stake amount and operator quality respond to changes in the risk-adjusted reward (the multiplier minus the expected slashing loss). 3. Iterative Calibration: Start with a conservative multiplier, monitor stake levels and operator concentration, and adjust gradually. Utilizing a dynamic multiplier that increases only when stake falls below a target and decreases when it is above can automate this balance. The equilibrium is found where the marginal cost of emitting one more token in rewards equals the marginal benefit of the additional security it buys.
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