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Analyze bribery under alternative reward schemes and off-protocol incentives (MEV)

Analyze bribery attacks under resource-proportional reward schemes and in the presence of off-protocol incentives such as MEV, comparing their impact on strategic equilibria, welfare, and the effectiveness of counterincentives relative to the block-proportional reward setting.

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Background

The paper assumes block-proportional rewards. However, other schemes like resource-proportional rewards exist in practice and may alter incentives. Additionally, off-protocol revenue streams (e.g., MEV) can materially affect utilities and attack profitability.

The authors explicitly identify analyzing alternative reward designs and off-protocol incentives as an open question to better approximate real-world incentive environments.

References

Our work also poses various open questions for future work. Finally, we consider block-proportional rewards, but alternative schemes, like resource- proportional rewards [28], have been used in practice and are worth analyzing. Additionally, off-protocol incentives, e.g., MEV [40], could approximate the real world better.

Blockchain Bribing Attacks and the Efficacy of Counterincentives (2402.06352 - Karakostas et al., 9 Feb 2024) in Section 8 (Conclusion)