Five years post-Shelley, a new, in-depth analysis of Cardano's incentive mechanism is now available to the community. This report was compiled with the support of numerous ecosystem contributors.
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The report confirms the system is a "technical success" in securing the network. It also highlights some of the current challenges for the stake pool operator (SPO) network.
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Key insights include:
An analysis of the ‘Viability Gap’ for active SPOs.
The ‘Paradox of Pledge,’ which is effective as Sybil resistance but not relevant for pledges under 10M ada.
The critical long-term transition to a fee-based sustainability model.
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Let's work together to refine and strengthen Cardano's incentives. #Cardano
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