Blockchain 101
Validator Economics and Incentive Design
In this Course, we explore the economic engine that keeps Proof of Stake blockchains alive: validator incentives. You’ll learn how staking, slashing, and reward structures align individual interests with network security, turning self-interest into collective trust. We’ll examine the mechanics of delegation, token inflation, and mechanism design, showing how game theory ensures validators act honestly even when profit is their primary motive. You’ll also dive into challenges like centralization risks, penalties for misbehavior, and the delicate balance needed for long-term sustainability. By the end, you’ll understand how incentive design is more than just payouts and punishments—it is the foundation that makes decentralized consensus possible.
Course Content
What Are Validators and Why Incentives Matter
Delegation, Inflation, and Game Theory
Penalties, Attacks, and Long-Term Sustainability