Multi-Dimensional Blockchain Resource Pricing
An overview of how to design incentive structures when the network of validators incurs a social cost. Validators may need to raise a minimum level of revenue to operate. For these reasons, blockchain designers may find it optimal to introduce price controls on various blockchain resources. Abdou Ndiaye (NYU) examines relative pricing of blockchain resources in this context and highlights the role of various elasticities. He examine the pricing of intermediary and necessary resources and provide conditions for uniform pricing. Finally, he applies his results to the design of multi-dimensional transaction fee mechanisms.
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