Blockchain-based decentralized reward sharing: the case of mining pools

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2 Citations (Scopus)

Abstract

We introduce a reciprocity protocol, an innovative approach to coordinating and sharing rewards in blockchains. Inherently decentralized and implementable, it puts emphasis on incentives rather than forcing specific sharing rules from the outset. Analyzing the non-cooperative game the protocol induces, we identify a robust, strict, and Pareto-dominant symmetric equilibrium. In it, even self-centered participants show extensive systemic reciprocity. Thus, despite a setting that is generally unfavorable to reciprocal behavior, the protocol enables users to build trust between themselves by taking on a role akin to a social contract.
Original languageEnglish
Article number4
JournalACM Transactions on Economics and Computation
Volume12
Issue number1
Number of pages26
ISSN2167-8375
DOIs
Publication statusPublished - 2024

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