📖Coaction Network

Coaction has operated as an infrastructure provider for proof-of-stake networks for several years. Throughout this experience, we have come to the realization that the economic design principles that govern proof-of-stake are inherently flawed, proven by the fact that hyper-centralized validator ecosystems have surfaced across the majority of these protocols. This problem is rooted in the difficulty that smaller validators face in competing with their larger counterparts for additional delegation due to a combination of economic rationality, a lack of differentiation, and network effects.

Economic Rationality

Delegators, or those who stake their tokens with validators, are generally economically rational. They want to maximize their returns while minimizing risk. This often leads them to stake with well-known, reliable validators who have a history of uptime and good performance. These validators often have the resources to ensure high-quality service, including low block miss rates.

Lack of Differentiation

Smaller validators often struggle to differentiate themselves in a meaningful way. Even if they offer zero commission and have excellent performance metrics, they are essentially offering a "commodity" service that is not significantly different from what larger, more established validators offer.

Network Effects

Larger validators benefit from network effects. As more people stake with them, they become more secure and reliable, which in turn attracts even more stakers. This creates a cycle that can be hard for smaller validators to break.

We believe that the solution to this problem lies in the formation of cross-chain validator groups (CVG). That is why we created Coaction Network, a novel protocol that will create the world's very first CVG, which will be powered by the Coaction Infrastructure Token (CIT). Our unique tokenomic design will incentivize delegators and validators alike to join our network, and the success of our network will establish a proof-of-concept that will usher in an innovative era in staking practices.