$SAGA Economic Model Analysis

Original author: 0xLoki

Original source: twitter

Note: This article comes from @Loki_Zeng’s Twitter account, and is compiled by Mars Finance as follows:

The essence of SAGA's business model is to distribute block space to downstream demand parties. A key issue involved is how to set prices. SAGA uses a unique "musical chairs pricing" method:

(1) Assume that there are a=12 validators in the initial state, and SAGA hopes to select 8 of them for delegated verification;

(2) First, SAGA selects a certain number of validators according to the staking rate ranking to enter the bidding phase. For example, if p=10, then the 11th and 12th ranked validators will be eliminated;