Security Sustainability Ratio

The security sustainability ratio measures the balance between the cost of securing a network and the revenue generated by the network. If the cost of security, in the form of token issuance, is higher than the economic activity the network supports, the model may be unsustainable in the long term.

A healthy ratio indicates that the protocol is generating enough value through fees or other means to justify its security expenditure. This ratio helps investors identify protocols that have moved beyond the bootstrap phase and are achieving real economic scale.

It is a key indicator of whether a project can survive without relying solely on token dilution. Monitoring this ratio allows for a better understanding of a protocol's long-term viability and competitive advantage.