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.
Project Description
All of the info is in the presentation in the slides.
Users
Users pay in ETH
- Captures value to ETH
- Aligns with Ethereum ecosystem & promotes Ethereum network health Optimize for cheap tx's
- see in other design components Pay proposers in ETH, not TKO, to minimize user friction while accruing value to ETH
Proposers No capital requirements
- Minimizes proposers' barriers to entry --> Maximizes # of proposers --> decentralization ----> We want deceentralization of proposers because this ultimately drives down users' costs
Stakers subsidize proposers' required fees to provers in exchange for a DAO-set variable % of tx fees.
How it's Made
I followed the Eat Sleep Crypto / Token Dynamics Demand-Side Tokenomics framework
https://www.youtube.com/watch?v=I_4QbbZJjsA
Include one bespoke tokenomic mechanism, designed to temporarily subsidize user fees with a mint-and-burn model
Also included staking pools to map the value of ETH flowing through the system to the value of all circulating TKO.
