Game Theory

AlexaDAO is grounded in (3,3) game theory, focusing on maximizing staking. Greater participation in staking translates to enhanced collective rewards.

Increased staking not only benefits individual participants but also fortifies the protocol through a combination of staking and bonding.

Ideal Scenario :

When all users stake, both individual and collective rewards reach their peak, bolstering the protocol’s stability.

Strategic Options :

Bonding yields short-term benefits and discounted tokens, while staking provides superior long-term value. Although bonding contributes to Protocol Owned Liquidity (POL), staking ensures optimal returns.

Dangers of Selling :

Selling compromises the protocol's strength and reduces overall rewards. Staking is vital for ongoing growth.

Unfavorable Outcome :

A mass sell-off devalues the protocol and diminishes rewards for all. Staking is essential for maintaining system stability.