Decentralizing the incentive mechanism for a target restaking degree

Ascertain whether the reward-based mechanism that incentivizes validators to maintain a network-wide target restaking degree in elastic restaking networks can be implemented in a decentralized manner while achieving the same equilibrium guarantees.

Background

The paper designs a reward scheme and analyzes a network formation game in which validators’ allocations lead to a Nash equilibrium at a desired restaking degree. This design assumes a mechanism to set and enforce reward rules to guide validator behavior toward the target restaking degree.

The authors explicitly raise whether such an incentive mechanism can be decentralized, which would remove reliance on centralized coordination while preserving the equilibrium and robustness properties established in the paper.