Security Economic Equilibrium

Security economic equilibrium is the state where the cost of attacking a network is perfectly balanced against the security budget and the economic value of the assets protected by the network. It represents a point of stability where validators are sufficiently incentivized to secure the network, and the cost of an attack is too high to be profitable.

Achieving this equilibrium is the goal of every major blockchain protocol. If the security budget is too low, the equilibrium is fragile and susceptible to attacks.

If it is too high, the protocol may suffer from unsustainable inflation. Finding this balance is a complex task involving game theory and market dynamics.