Here is a quick summary I wrote about the recent

v2 of tokenomics paper. Still DYOR :)

My favorite parts of $DAG tokenomics paper so far 😊

1) $DAG is an expression of a New Digital Economy that trades in DATA.

2) integration of ANY external data source or blockchain

3) layer zero front running protection

4) Arbitrage and manipulation protection

5) generative (to me this ecosystem will be alive and feeding itself for growth)

6) value for all tokens connected via L_0 will be defined in terms of $DAG. (translation $DAG is the DOW of the Hypergraph)

7) $DAG underwrites all projects connected to the Hypergraph so this should ensure quality projects to be listed!

8) As the base layer $DAG is necessary for cross chain liquidity and atomic swaps - guarantees huge throughput and massive token use creating value.

9) The 2 equations for Node Rewards is genius!

“Pareto-optima”. Basically it means “its best calculated this way when there are so many variables” - this is Swarm Intelligence for multi-objective Optimization when there is no other feasible solution. Allows for the expansion and contraction for best results from all angles of the economic structure.

10) Page 9 starting balance & rewards manifold figures 1.0 & 1.1 basically are a 3D representation of the potential accounts receivable and payable at any given second within the ecosystem.

I’m sure this all figured into Wyatts high powered Logarithmic Algebraic formula that is used to allow this ecosystem to breath for both buyers and sellers.

11) Node Rewards are proportional to the TPS and are again adjusted to fair and balanced equilibrium as the network grows. Again “Pareto-optima”!

12) The Hypergraph is at its core designed to be feeless. However as bandwidth demand increases the priority is given to the node/addresses that hold the most $DAG. This is capitalism at its finest! Bandwidth priority will go to the channels and nodes that have the most capital, most demand, and largest investment on the line.

13) The Hypergraph is the first truly free economy removing middlemen and allowing for firsthand participation by stakeholders (citizens) for wealth generation [without the pleasure of paying to participate 😂 in the form of tax].

14) Each State Channel is considered a network and will be incentivized in $DAG

State Channels (native or hybrid) may pay their node operators in either $DAG or their own native token.

15) Each State Channel also = a layer 1 project type (except for maybe $LTX) no details here, but we know $LTX is going to have one of the 1st state channels and it’s own purpose within the Hypergraph. ??Excited to find out what $LTX running on $DAG represents. 🧐

16) Some State Channels will be HYBRID chains performing validation for more than one state channel or $DAG liquidity pool.

17) Some State Channels SINGLE (native) chains and rewards are paid in that channels native token.

18) Basically, State Channel Business and related tokenomics are a full proof way of buyers and sellers holding each other accountable up and down the line of profitability. True integrity within this business model will be realized by both the large and small investor.

19) State Channels (Layer One Projects/wholly owned businesses within a capitalist society) are autonomous within a regular business model environment and rules. Ex. They may choose how they incentivize their network participants.

A) Dividend Like
B) Interest Like
C) Fee Like

20) Well thought out and detailed post ecosystem growth, rural area participation (low internet connectivity, and special use case) participant rewards accounted for.

21) Layer Zero (Hypergraph Projects/State Channels/Businesses may monetize their capabilities or services through:
A) Subscription Services
B) Service Models
C) Development & Integration
D) Trading & Finance
E) Liquidity Pools

#12 is a good one