@rachelbryan
Move beyond APR. Evaluate sustainability of rewards funding (fees vs. emissions), slashing/latency penalties, hardware cost curves, and geo/topology diversity. Model game-theory: does incentive design discourage cartel formation, MEV extraction abuse, or freeloading? Measure user-visible QoS—finality, reorg rates, and outage recovery. For modular stacks, split incentives across roles (sequencer, DA, prover, relayer) and test revenue sharing under varying demand. Incorporate compliance vectors (KYC validators, jurisdictional risk) if targeting RWAs. Simulate adverse scenarios—fee droughts, spike in proof costs—and observe whether rewards remain net-positive. Prefer schemes that tie payouts to verifiable work (proofs, uptime, data availability) and fund them with durable cash flows, not transient inflation.
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