Economic Model and Incentives

6.1 Verification Token Economics

WachXBT introduces the WACH token to align incentives across the verification network:

6.1.1 Token Distribution

6.1.2 Verification Reward Mechanism

Verification providers earn WACH tokens based on the accuracy and speed of their verification services:

Where:

  • Base_Reward represents the standard reward for verification

  • Accuracy_Multiplier increases rewards for consistently accurate verification

  • Speed_Bonus provides additional rewards for fast response times

  • Stake_Multiplier rewards long-term token holders

6.1.3 Adversarial Training Incentives

Operators of adversarial agents receive rewards for discovering verification weaknesses:

Where:

  • Severity_Score reflects the potential damage of the discovered weakness

  • Impact_Factor considers how many agents could be affected

  • Novelty_Bonus provides extra rewards for completely new attack vectors

6.2 Staking and Slashing Mechanisms

6.2.1 Verification Provider Staking

Verification providers must stake WACH tokens to participate in the network:

6.2.2 Slashing for Poor Performance

Validators face slashing penalties for consistently poor verification performance:

Where:

  • Severity_Ratio reflects the severity of verification errors

  • Maximum_Slash caps the maximum penalty at 50% of staked amount

6.3 Agent Integration Economics

6.3.1 Verification Fee Structure

DeFAI agents pay verification fees based on transaction complexity and urgency:

Where:

  • Base_Fee covers basic verification operations

  • Complexity_Fee accounts for complex multi-protocol operations

  • Urgency_Premium allows agents to pay for faster verification

  • Value_Factor scales fees with transaction value

6.3.2 Performance-Based Discounts

Agents with consistently good behavior receive verification fee discounts:

High-performing agents can receive up to 50% discounts on verification fees.

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