kaal:claim:3402701-026

In a blockchain cryptocurrency, transaction taxes should be set to match the cost of running the network, meaning the cost of incentivizing enough nodes for the desired level of decentralization plus the cost of maintaining the coin's stability.

Source quote, verbatim

In a blockchain cryptocurrency, transaction taxes should match the cost of running the network, i.e., the cost required to incentivize a sufficient number of nodes to operate in order to maintain the level of decentralization desired

From

Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies - First Order Principles (2019), 3.2 TRANSACTION TAXES VS. HOLDING TAXES, p. 23
https://ssrn.com/abstract=3402701 · source PDF

Cite as

Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies - First Order Principles (2019). SSRN: https://ssrn.com/abstract=3402701

Holds when

blockchain cryptocurrencies with node incentive costs

Classification

designsupport: arguedrisk-and-incentivesdecentralizationtokenomics

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