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The Monad Thesis With James Hunsaker

The Rollup

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Economic Dynamics of Layer 1 Blockchains

This chapter explores the economic intricacies of Layer 1 blockchain networks, focusing on the miner extractable value (MEV) and its implications for validators and application developers. It discusses the misalignment of incentives, the significance of application-specific sequencing, and the cultural shift towards innovation in infrastructure applications. The conversation also addresses the challenges of automated slashing in blockchain systems and the need for transparency in risk management.

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