Liquid Proof-of-Stake in Tezos: An Economic Analysis

In this paper, we investigate some economic fundamentals related to the Tezos blockchain platform under Emmy* consensus protocol. The protocol is based on a liquid version of Proof-of-Stake, in sense that users can temporarily delegate or all their Tz units full nodes. addition increasing stake node, and thus probability being selected as block baker/endorser, such delegation induces property super-additivity users’ selection baking/endorsing block. That is, with delegation, may be larger than sum probabilities without delegation. study how monetary holdings stakes evolve time, also discussing individual user market implications