Insaanity tokenomics

Ethereum validators stake 32 ETH to participate in consensus. Insaanity utilizes this already existing stake of validators to secure the services of the protocol by borrowing slashing rights on the stake from EigenLayer. This eliminates the barrier to entry arising from additional capital requirements. The services of the protocol are secure as long as the combined profit from corruption of all the services a staker has staked in (including services of other dApps and protocols on EigenLayer) is less than the value of his stake restaked on EigenLayer. EigenLayer requires this condition to be met as a prerequisite for a staker to be allowed to stake in a given task(s).

(EigenLayer whitepaper Appendix B )

However, the implementation of this feature in EigenLayer is due in later upgrades and not in the initial launch. Until then, we bootstrap by using techniques such as rate control and conditional threshold signing in order to ensure economic security of the services of our protocol, namely the bridging service which we launch first.

As part of our future roadmap, we plan to diversify our node operators. Along with EigenLayer operators, the Insaanity protocol will also have its own nodes that can participate by staking the Insaanity token native to the Insaanity protocol. Operators from EigenLayer equivalent re-staking protocols on other Proof of Stake chains will also be included. However, major weightage in the signing threshold will be assigned to EigenLayer operators. The insaanity token will be a limited supply ERC-20 token with rough allocations as follows:

Team – 18%

Investors – 18%

Treasury – 50%

Staking Rewards & Ecosystem Incentives – 14%

The team and some investors will follow a balanced vesting schedule to avoid any sudden sell pressure on one hand and unavailability of tokens in the market on the other hand. Note that there will be no public sale.

Last updated