The Problem

Static Incentives in a Dynamic Environment

Traditional staking models, often anchored to predetermined reward distributions, struggle to remain effective across evolving market conditions. These frameworks do not sufficiently account for market sentiment shifts, price fluctuations, or the unpredictability of user participation. In periods of strong demand, fixed rewards may deplete available reserves prematurely, generating inflationary pressures and undermining long-term value. Conversely, when conditions sour, static incentive models may fail to entice new or existing stakers, eroding network security and liquidity. Moreover, participant behavior is rarely linear. External factors may prompt abrupt changes in staking volume, amplifying the misalignment between rewards and actual ecosystem needs. Without the capacity to refine incentives in real-time, conventional staking mechanisms remain vulnerable to inefficiency, imbalance, and reduced stakeholder confidence.