Crypstarter Equilibrium Theory

Crypstarter Equilibrium Theory

Game theory (3.3) has proven to have certain advantages and become famous in the crypto industry. However, We want to give another perspective in balancing the interests of the user and the system. The Crypstarter Equilibrium Theory

The key point is to encourage all behaviors from Buy — Stake — Invest — Sell into balanced scenarios and partially control those behaviors on a cyclical basis, and create a continuing phase difference that helps avoid the phenomenon of overloading 1 behavior on the system.

Based on that idea, We want to come up with another Theory based on Nash Equilibrium about building a system to encourage behaviors that create a balance for both User and System, thereby helping both objects can develop together sustainably.

This is a different view from the game theory OlympusDAO(3,3). In our opinion, the impact of the behavior on the user will have different points than the system.

The goal of this theory is to employ Nash equilibrium to balance the interests of both users and the system.

According to our theory, the behavior with the best impact on users is "Sell" (+3), because in that activity users profit from their investment/staking with real money . At the same time, this is also a bad behavior on the system (-1).

On the contrary, the "Invest" behavior has the best impact on the system (+3) because the nature of this behavior includes other good effects such as bond, stake. For the user the behavior "Bond" is considered the least beneficial and is therefore scored (-1).

Based on the above definition, the protocol will offer the following scoring-based behavioral incentives:

  • The behavior that is most beneficial to the user or the system will be added 1 point.

  • Behaviors that balance the interests of both are awarded 2 points.

Based on Nash equilibrium theory and the goal is to create pairs or sequences of behaviors that balance the interests between users and the system. This means that when there is an action acting on the system (Current activity), the protocol will create a mechanism to encourage a behavior that creates a balance (Encouraged activity) of benefits for both.

More specifically, it is a protocol that will create an objective incentive mechanism (for example, adjusting APY, discount for token sales, increasing the purpose of owning AURE or CST through cross activity between Dapps in the ecosystem...).

This has the dual benefit of increasing CST and AURE usage, encouraging behaviors that benefit users and systems, and extending the operation and interoperability between Cryptstarter's products across the ecosystem.

The goal of this theory is through which we develop a system of sustainable growth and maximization of benefits for all communities. Sustainable growth will help users have a safe investment and asset ownership channel and grow in the long run.

By applying the theory mentioned above, we design a system structure that distributes and encourages balanced pairs or sequences of behavior and controls it cyclically (by means of objective incentive mechanisms). By doing this, the system will achieve a sustainable level of safety by avoiding negative actions that occur in bulk at a time leading to the risk of a price crash.

Different from the operating theories of other projects, Crypstarter is designed to accept (Sell) negative behavior towards the system (but beneficial to the user and inevitably will always happen) and generate other behaviors to balance out to ensure that those sequences of behavior will always play out in the safest way for both the user and the system.

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