How Is the Minimum Staking Requirement Determined? ⎊ Path

How Is the Minimum Staking Requirement Determined?

The minimum staking requirement is determined based on the estimated economic cost of an attack that could compromise the data feed. The stake must be greater than the potential profit a malicious actor could gain from manipulating the data (e.g. from an options settlement or liquidation).

This ensures that the financial risk of losing the stake outweighs the financial reward of dishonesty, securing the network cryptoeconomically.

How Does Staking Prevent an “Economic Attack” on an Oracle?

How Does the Block Reward Subsidy Affect the Economic Incentive for Selfish Mining?

How Does the Cost of a 51% Attack Relate to the Concept of “Risk-Free Rate” in Finance?

What Is the Concept of “Economic Security” in the Context of Blockchain?

How Does a Coin’s Market Capitalization Affect the Economic Incentive for a 51% Attack?

What Are the Economic Incentives for Miners to Act Honestly Rather than Attempt a 51% Attack?

What Financial Derivative Could an Attacker Use to Profit from a Successful 51% Attack?

How Does PoS Achieve ‘Economic Finality’?

Glossar

Staking Requirement

Collateral ⎊ The staking requirement, fundamentally, represents a pledge of assets ⎊ typically cryptocurrency ⎊ to secure participation in a blockchain network or a derivative contract.

Minimum Staking Requirement

Collateralization ⎊ Minimum staking requirement, within cryptocurrency protocols, denotes the quantity of a digital asset a participant must lock to gain network participation rights, typically for validation or governance.