Discuss on twitter with the author The security properties of a Proof of Stake network are fully determined by: (1) the staking algorithm (2) the staking token distribution (3) the social consensus that is established by client teams and smart contract developers (widely constructed as the community that develops the intellectual and code infrastructure of the network). In a simple model; the comitment provided by the network is automated liquidity provision for swaps when there is intrinsic heterogeneity in the utility different agents from the underlying tokens(as in [1]). Efficiency for social welfare dictates that these revenues be distributed to incentivize the the value generated by the system. Doing so in a way that can be reasoned about, requires to some extent it is incentive compatible, since this gives access to the preferences.