Sustainable Blockchain Economics
How Ergo solves the security budget problem
What happens when block rewards run out? Ergo's Storage Rent provides a protocol-level solution to the security budget problem that every PoW chain will eventually face.
Problem
Bitcoin's security budget relies on diminishing block rewards + transaction fees. As rewards halve, will fees be enough to secure a trillion-dollar network? Nobody knows.
Solution
Ergo's Storage Rent reclaims fees from dormant UTXOs, creating a sustainable revenue stream for miners indefinitely. Plus, it prevents state bloat and incentivizes active use of the chain.
Step-by-Step Guide
Learn about the security budget challenge facing Bitcoin and other PoW chains.
Related Resources
Infographics
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Infographic comparing Ergo and Cardano as two eUTXO chains with the same research roots but different choices on consensus, launch, privacy and sustainability.
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Fair-launched Proof-of-Work blockchain with eUTXO smart contracts, Sigma Protocols privacy and a sustainability stack built for cypherpunks.
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