How Does Cryptoeconomics Align the Incentives of Oracle Node Operators?

Cryptoeconomics aligns incentives by using a system of rewards and penalties (staking, slashing, and fees) to make honest behavior the most profitable path for a node operator. Operators are rewarded with fees for providing timely and accurate data, while the risk of losing their staked capital (slashing) for dishonesty outweighs any potential profit from manipulating the data.

This creates a strong economic barrier to malicious activity.