Mainnet Milestone: Dusk Economics Report
Tokenomics, emission schedule, provisioner ROI, and economic security
We are pleased to share the release of POL Finance’s thorough report on the Dusk economics and financial mathematics, and their recommendations. Covering a broad and important range of topics, POL has completed their review of our economic security and viability, covering everything from tokenomics to node provisioner rewards.
The report covers their recommendations, mathematical models, and reviews of our pre-existing economic design.
The Process
We contracted POL due to their deep knowledge of and experience in economics and financial mathematics. It is not only our code that needs to be secure, the numbers need to add up too.
Security is often thought of in terms of code and programming hacks, but poorly designed tokenomics can lead to the downfall of a project, either through external exploitations or internal death spirals.
The goal was to ensure that the Dusk protocol had sustainable numbers that would allow the project to grow, reward those who participated in the protocol, and ensure its security.
They thoroughly investigated our tokenomics, and tested and projected the numbers using advanced mathematical equations and statistical techniques.
The Report
The final report is an in-depth analysis of 33 pages, covering:
- The Emission Design
- The Distribution Design (including Network Security, Economic Sustainability, Consensus efficiency)
- Gas Calculation Design
The report concludes by affirming the importance of incentivizing node provisioners adequately while ensuring the long-term sustainability of the project and promote good behavior among provisioners.
“By continuing to refine and implement these strategies, Dusk can achieve its goal of creating a decentralized platform that not only meets the current demands of its users but also anticipates future challenges and opportunities in the blockchain space” - POL Finance
We are pleased with the results and POL’s expertise and guidance. Following the report we feel Dusk is in a good position economically, and able to balance the short-term needs for emissions and incentivization with the long-term need of sustainability, as well as ensuring the project is economically secure.
It is estimated that 19.86 DUSK will be emitted per block, with the distribution of the DUSK being as follows:
- 80%* to the block generator
- 5% to the validation committee
- 5% to the ratification committee
- 10% to the Dusk fund
* The 80% is not fixed, but rather is 70% + 10% conditioned on the inclusion of as many votes as possible.
You can read the full report here.
You can find the Audit repository on Github. We will add reports here as they become available.
Thank you to POL Finance for their detailed and thorough work, and such a full and complete report.
