Xenophon Docs
(3,3) Game Theory
(3, 3) is a result of the game theory profit matrix describing the incentive structure of XenophonDAO. (3, 3) is a win-win situation. Currently, users can perform three operations:
  • Staking (+2)
  • Bonding (+1)
  • Selling (-2)
Staking and Bonding are considered to be beneficial to the protocol itself, while Selling is considered to be detrimental to the protocol. Both Staking and Selling will cause price changes, but Bonding will not (we believe that buying XPH from the market is a prerequisite for Staking, which leads to price changes). If these two actions are beneficial, then participants in mobile prices also get half of the benefits (+1). If these two behaviors are contradictory, the bad guys who change the price get half the benefits (+1), and the good guys who change the price get half the benefits (-1). If both of these actions are unfavorable, which means that both participants are selling, then they will both get half of the negative impact (-1).
Therefore, given two participants, all the scenarios they can do and their impact on the protocol are as follows:
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