[RFC] Network Coordination Architecture: A Unified Path Forward
Category: Governance
Tags: coordination-infrastructure, network-upgrade, economic-reboot
Summary
This post synthesizes recent work from the Token Economics Working Group (see Weekly Recap, Jan 27), Christianβs Comprehensive Proposal, Maxβs Model Comparison, and the Economic Reboot Roadmap.
The working group has been developing these ideas through weekly sessions over the past two years. The Jan 27 session focused specifically on formalizing the economic logic and integrating AI-assisted modeling tools. This synthesis reflects the forward-moving consensus from that session.
Key finding: The community proposals are complementary, not competing. They address different layers of the same coordination challenge.
Context: What Problem Are We Solving?
The current network architecture was inherited from standard Cosmos SDK design. It works, but it wasnβt built for what Regen actually doesβverifying and tracking ecological outcomes at scale.
Three structural mismatches have become clear:
-
Security model mismatch: Network security currently depends on token price. When prices are low, the cost to disrupt the network drops. This creates vulnerability precisely when the network needs stability most.
-
Incentive mismatch: Block rewards flow to capital holders regardless of their contribution to the networkβs core function. Someone holding tokens passively receives the same rewards-per-stake as someone actively building verification infrastructure.
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Value capture mismatch: Transaction fees are flat and disconnected from the economic value of credits being verified. A $10 credit and a $10,000 credit pay the same gas fee.
The proposals address all three.
The Emerging Consensus
After two years of working group deliberation, five areas show strong alignment:
| Area |
Status |
What It Means |
| Authority-based consensus |
Consensus |
Validator selection based on demonstrated contribution, not token holdings |
| Fee-based value capture |
Consensus |
Percentage of credit transaction value, not flat gas fees |
| Activity-based rewards |
Consensus |
Network rewards flow to participants creating verifiable outcomes |
| Supply discipline |
Consensus |
Fixed cap with programmatic supply reduction tied to credit activity |
| Community Pool distribution |
Consensus |
Central coordination point for directing resources to contributors |
This represents a shift from capital-weighted security to contribution-weighted coordination.
How the Proposals Fit Together
Each proposal addresses a different layer. Together they form a coherent stack:
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β DECISION-MAKING LAYER β
β Authority validators: Infrastructure builders + Trusted β
β partners + Data verification organizations β
β Constitutional framework + Forum-first deliberation β
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β VALUE CAPTURE LAYER β
β Registry fees (% of credit value) directed to: β
β βββ Supply reduction (25-35%) β
β βββ Validator compensation (15-25%) β
β βββ Community coordination pool (50-60%) β
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β DISTRIBUTION LAYER β
β Community Pool circulates to: β
β βββ Credit purchasers/retirers (contribution tracking) β
β βββ Platforms enabling transactions (facilitation credit) β
β βββ Long-term coordinated holders (optional stability tier)|
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β IMPLEMENTATION LAYER β
β Coordinated via Economic Reboot Workstreams (WS0-WS5) β
β AI-assisted modeling for parameter calibration β
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What Each Proposal Contributes
Christianβs Proposal: Decision-Making Infrastructure
Establishes who makes decisions and how authority is earned:
Authority Validator Categories:
- Infrastructure builders β Organizations actively developing verification systems, methodology frameworks, and monitoring tools. Their stake is their ongoing work.
- Trusted network partners β Established organizations (ReFiDAO, Toucan, Kolektivo, others) with demonstrated commitment to ecological verification infrastructure.
- Data verification organizations β Entities responsible for attesting to data quality. Direct accountability for credit integrity makes them natural guardians of network consensus.
Contribution Tracking:
- Purchasers and retirers of credits earn proportional credit for directing resources toward ecological outcomes
- Platforms facilitating transactions earn credit for enabling coordination
- All new token circulation flows through the Community Pool before distribution
Maxβs Proposal: Coordination Parameters
Provides specific ratios and mechanisms:
- 65-75% / 25-35% split: Transaction value flows primarily to ecological activity, with infrastructure maintenance funded from the remainder
- Fee-weighted participation: Decision-making influence proportional to contribution, not just holdings
- Stability mechanism: 6% annual return for participants who commit to coordinated long-term holding, reducing volatility while maintaining liquidity
Brandonβs Roadmap: Implementation Structure
Organizes execution into coordinated workstreams:
| Workstream |
Focus |
Deliverable |
| WS0 |
Core Infrastructure |
Authority migration framework |
| WS1 |
Incentive Design |
Supply reduction modeling |
| WS2 |
Decision-Making |
Constitutional framework |
| WS3 |
Registry Integration |
Fee architecture |
| WS4 |
Coordination Mechanisms |
Contribution tracking system |
| WS5 |
Transition Communication |
Stakeholder migration support |
Token Economics Working Group Context
The Jan 27 session (documented in Post #64) focused on:
- Economic Logic Sprint β Formalizing the mathematical relationships between fees, supply reduction, and distribution
- AI Integration β Using modeling tools to test parameter sensitivity before committing to specific values
- Synthesis work β Christianβs comprehensive proposal emerged from this session, integrating forum discussions and prior WG sessions
The working group has been meeting weekly since August 2023. This synthesis reflects accumulated deliberation, not a single proposal.
Complementary Mechanisms
The proposals donβt competeβthey solve different problems:
Activity Tracking + Stability Tier
| Mechanism |
Serves |
Function |
| Contribution tracking |
Active participants |
Rewards transaction volume and facilitation |
| Stability tier |
Long-term holders |
Provides predictable return for coordinated commitment |
Recommendation: Implement both. Contribution tracking for active participants, stability tier as optional layer for those providing long-term liquidity.
Fee Split + Distribution Ratios
Christianβs proposal defines destinations; Maxβs provides starting percentages:
| Destination |
Function |
Starting Range |
| Supply reduction |
Creates scarcity tied to ecological activity |
25-35% |
| Validator fund |
Compensates authority validators |
15-25% |
| Community Pool |
Distributes to contributors |
50-60% |
Note: Exact percentages require modeling. These ranges establish starting points for deliberation.
What Still Needs Work
Modeling Required
Before parameters can be finalized:
-
Supply cap specification β Neither proposal specifies the cap value. This number shapes all downstream calculations.
-
Equilibrium analysis β At what fee percentage and transaction volume does supply reduction exceed new circulation? This threshold determines long-term supply dynamics.
-
Fee sensitivity β How do different fee levels affect credit market competitiveness? The network competes with traditional registries and other verification platforms.
Governance Questions
- Validator set size: How many authority validators? (Working assumption: 15-21)
- Category balance: What ratio of builders / partners / data organizations? (Working assumption: minimum 5 each)
- Trust criteria: What defines βtrustedβ partner status? Requires explicit criteria.
- Term structure: How long do validators serve before rotation? (Working assumption: 1 year terms)
Transition Questions
- Current staker migration: How do existing stakers transition to the new model?
- Validator conversion: What support for existing validators adapting to new requirements?
- Timeline: What pace minimizes disruption while maintaining momentum?
Implementation Sequence
| Phase |
Focus |
Timeline |
Dependencies |
| 1 |
Decision-making framework |
Current |
None |
| 2 |
Economic modeling |
Q1 2026 |
Supply cap specification |
| 3 |
Technical implementation |
Q2 2026 |
Modeling complete |
| 4 |
Network integration |
Q3 2026 |
Phase 3 complete |
From Christianβs proposal: βThe decision-making restructuring can and should proceed while modeling continuesβthe two workstreams are complementary but not dependent.β
Call to Action
For Community Members
- Review the convergence points β do they reflect your understanding of working group discussions?
- Comment on open questions β especially transition concerns
- Flag any divergence not captured here
For Token Economics Working Group
- Prioritize supply cap modeling
- Develop equilibrium scenarios
- Produce fee sensitivity analysis
For Technical Contributors
- Assess authority migration requirements
- Scope contribution tracking infrastructure
- Evaluate Community Pool distribution mechanisms
Source Documents
Next Steps
- Discussion period: 2 weeks for community feedback
- Modeling sprint: Working group delivers supply cap analysis
- Framework proposal: Formal RFC for Phase 1 decision-making structure
- Technical scoping: WS0 produces migration requirements
This synthesis emerged from Token Economics Working Group deliberations. Contributors: Christian, Max, Brandon, Gregory, Will, James, and all WG participants.
The proposals described here represent working consensus, not final specifications. Parameter values require modeling and governance approval before implementation.