Noam Nisan, a pioneer in Algorithmic Game Theory, discusses his research and tokenomics for PoS systems. Topics include complexity theory, best practices for designing systems, pricing transactions, Layer 2 solutions, MEV, and shared sequencers. They also explore the role of zero knowledge in Starks and the possibility of Starknet as a federated system.
Read more
AI Summary
Highlights
AI Chapters
Episode notes
auto_awesome
Podcast summary created with Snipd AI
Quick takeaways
Noam Nisan shares insights on best practices for designing proof-of-stake (POS) systems.
The challenge of achieving perfect incentive compatibility in transaction fee systems and potential solutions to mitigate MEV.
The importance of managing expectations and exploring heuristics in analyzing tokenomics in a complex and evolving landscape with interconnected layer two (L2) solutions.
Deep dives
Podcast Summary: Exploring Noam Nissan's Research and Academic Background
In this podcast episode, the hosts interview Noam Nissan, a professor at the Hebrew University of Jerusalem and principal researcher at Starkware Industries. They discuss Noam's extensive research background, beginning with his work on complexity theory and his transition to algorithmic game theory. They also delve into his current focus on game theory and blockchains, specifically exploring tokenomics and best practices for designing proof-of-stake (POS) systems. Noam shares insights from his recent blog post comparing measurable tokenomic outcomes of different live POS systems and expresses his aim to communicate best practices for system designers. Additionally, they touch on the challenges of analyzing models with L2s, cross-chain transactions, and MEV. While the problems are not solved in this interview, the discussion provides an engaging exploration of these topics.
Podcast Summary: Noam Nissan's Work on Mechanism Design and Transaction Fee Systems
In this podcast episode, Noam Nissan discusses his work on transaction fee mechanism design in the context of blockchain systems. He explains that these systems involve a two-sided mechanism design problem, considering both the incentives of validators (miners, sequencers) and the utility for users. Noam highlights the challenge of designing transaction fee systems that are both effective for the network and incentive-compatible. He also discusses the impact of MEV (miner extractable value) on transaction fee design. While acknowledging the complexity and difficulties of achieving perfect incentive compatibility, Noam emphasizes the need to establish a departure point against MEV and explores potential solutions to mitigate its impact on user fees. He suggests that even non-ideal mechanisms can be successful in large markets or in specific contexts.
Podcast Summary: The Future of Interconnected L2s and Tokenomics
In this podcast episode, the discussion touches upon the future of interconnected layer two (L2) solutions and their impact on tokenomics. The hosts and guests consider the potential for a vast ecosystem of L2s, bridging and interacting seamlessly with each other. They contemplate the challenges of designing and analyzing tokenomics in this complex and evolving landscape, where different L2s have unique fee structures and interactions. While acknowledging the uncertainty and difficulty of formal analysis in such a dynamic environment, they highlight the importance of managing expectations and exploring heuristics to understand the behavior of these interconnected systems effectively. The conversation also alludes to the broader question of maintaining decentralization and trustlessness as blockchain networks evolve, emphasizing the need to strike a balance between technological advancements and handling societal concerns.
Complexity theory and interactive proofs in the blockchain world
The podcast episode explores the intersection of complexity theory, interactive proofs, and blockchain technology. The guest discusses how concepts from these fields, such as zero-knowledge proofs, have evolved and found applications in the blockchain space. While the guest acknowledges their limited involvement in specific blockchain projects, they emphasize the fascinating development and potential of these areas of research.
Tokenomics and the balance between network effects and specialization
The guest discusses the trade-offs between network effects and specialization in the blockchain ecosystem. They highlight the benefits of having a larger network and the advantages of interoperability between different blockchains. They also explore the concept of federated systems and how they can strike a balance between shared infrastructure and individual optimization. The guest acknowledges the complexity of predicting the equilibrium of these systems but emphasizes the ongoing excitement and potential for innovation in the blockchain space.
In this week’s episode, Anna and Tarun chat with Noam Nisan, Professor at the Hebrew University of Jerusalem, Principle Researcher at StarkWare Industries and one of the pioneers in the field of Algorithmic Game Theory. They cover his extensive research and academic background, starting with his work on complexity theory as well as Algorithmic Game Theory and his current work on blockchains and Tokenomics at StarkWare.
They discuss his recent blog post; Simple Tokenomics for a Proof-of-Stake Utility Token, comparing the measurable Tokenomic outcomes of different live PoS systems and explore how Noam aimed to better communicate best practices for those designing these systems, plus much more.