Incentive Simulation Engine Logic
Forward Modeling & Stress Testing
Purpose
The simulation engine models incentive behavior under hypothetical scenarios before policy changes are enacted.
It predicts:
Influence distribution under new issuance rules Delegation clustering growth Governance throughput correlation I. Simulation Inputs
Current incentive_units table Weight formula parameters Proposed parameter change Treasury liquidity ratios II. Simulation Modes
Parameter Change Simulation Adjust decay rate / cap / multiplier and project 6–24 month distribution. Issuance Shock Simulation Model large issuance event and concentration shift. Delegation Cascade Simulation Model cluster growth under different delegation transparency rules. Inactivity Collapse Simulation Model turnout drop and governance paralysis risk. III. Output Metrics
Gini coefficient of weight distribution Top 5 influence percentage Dormant weight percentage Capture probability score IV. Deployment Rule
No structural incentive parameter change may be approved without simulation report attached.
Simulation becomes a prerequisite artifact for:
Major issuance rule changes Treasury-linked token changes Structural Function
The simulation engine introduces:
Pre-emptive capture resistance Governance resilience modeling