Taikonomics
Taiko is a type 1 zkEVM L2 which uses ETH as a native token to pay for fees. This design makes value capture more difficult; Taikonomics is a token economic architecture which captures value to TKO in accordance with technical and design constraints.
Screenshots
Problem Statement
All of the info is in the presentation in the slides.UsersUsers pay in ETHCaptures value to ETHAligns with Ethereum ecosystem & promotes Ethereum network health Optimize for cheap tx'ssee in other design components Pay proposers in ETH, not TKO, to minimize user friction while accruing value to ETHProposers No capital requirementsMinimizes proposers' barriers to entry --> Maximizes # of proposers --> decentralization ----> We want deceentralization of proposers because this ultimately drives down users' costsStakers subsidize proposers' required fees to provers in exchange for a DAO-set variable % of tx fees.
Solution
I followed the Eat Sleep Crypto / Token Dynamics Demand-Side Tokenomics frameworkhttps://www.youtube.com/watch?v=I_4QbbZJjsAInclude one bespoke tokenomic mechanism, designed to temporarily subsidize user fees with a mint-and-burn modelAlso included staking pools to map the value of ETH flowing through the system to the value of all circulating TKO.
Hackathon
ETHGlobal Tokyo
2024
Prizes
- 🏆
🤓 Taiko — Protocol Economics