The economic incentives of staking is Cosmos

(work in progress) Introduction The Cosmos Network is based on Bonded Proof of Stake. This means that rather than pay miners to secure the network, we will be paying validators to secure the network. It’s vitally important to get the economics of staking right so that the network stays healthy and secure. If the incentive to stake is too low, the network will not get the minimum amount of validators needed to keep many staking pools. If the incentive is too high, the network is overpaying for security and inflating at a rate that is detrimental to the economics of the network as a whole. Currently, the initial main-net is targeting 100 validators/staking pools. Ideally, each staking pool. Terms NOTE: Some of these are taken from https://github.com/cosmos/cosmos/blob/master/VALIDATORS_FAQ.md • Validator - a participant in the Cosmos PoS consensus system. You can become one by bonding ATOMs into the Cosmos PoS mechanism. • Validator Set Group of validators who will finalize/sign the block • Unbonding period - the number of days between a validator exit and the validator balance being withdrawable. • Inflation - The annualized rate at which ATOM supply…

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