Economic Sustainability

Aligning Incentives for Long-Term Success:

• Validator Incentives: Validators are rewarded for their participation in restaking by receiving additional rewards based on the amount of collateral they commit. This incentive system ensures that validators have a long-term interest in maintaining the network’s security and integrity. It’s a win-win system where validators earn more by contributing more to the ecosystem’s health.

• Reduced Network Overhead: The Restaking Agreement ensures that collateral is only increased when necessary (e.g., high-risk transactions), optimizing resource use across the network. This approach reduces the need for excessive capital while ensuring the system remains secure and efficient. Validators are only required to commit more when the situation demands it, thus avoiding unnecessary financial burdens.

• Self-sustaining Ecosystem: The restaking model creates a self-sustaining economic cycle. Validators earn rewards for validating transactions, particularly for high-stakes operations, and the network remains protected through collateral-based incentives. This keeps the Akashic ecosystem economically sustainable over time, ensuring that both validators and users benefit from the ongoing success and security of the network.