Rethinking Competition Models in Solver-Based Protocols

Fri, Jun 20, 2025, 12:48 PM · 24:26

Many solver-based decentralized protocols rely on competition models to incentivize actors like validators, solvers, and liquidity providers. While competition can drive efficiency, it also has a well-documented tendency to lead to centralization. As competitive dynamics favor the most resourceful players, smaller participants get squeezed out, ultimately reducing diversity and increasing reliance on a few dominant actors.