It would be nice if Layer 2’s could sustain the vision for a proof of stake future, but they can’t. Here is a simple example. You invest time and energy, and a minimum amount to stake on these layer 2’s. Yet your layer 2 token fluctuates. Your 15% yield makes no sense, when the market downturn takes 20–25% off your principal.
Case in point: https://cointelegraph.com/news/novogratz-says-luna-tattoo-is-a-constant-reminder-investing-requires-humility
This is the case for the vast majority of mainnet layer 2’s right now. We are different. Our firm’s defining feature: Mechanism Design.
Mechanism design: When an environment is inhabited by many agents, it is possible to define the rules of the environment (i.e., the game that the agents must play) so that the collective good of all agents is maximized when each agent adopts the game-theoretic solution that maximizes its own utility.
We use game theory to design our protocol for a collection of transaction routers so that each router has an incentive to act in such a way that global throughput is maximized. For more information: inquire to it@ondecentral.com to request access to our technical whitepaper.
Furthermore, we use mechanism design to construct intelligent multi-agent systems that solve complex problems in a distributed environment.
