Cardano Foundation research: large reserves don't guarantee proof-of-stake security
- —Paper "Reserve Depletion and Security Runway in Proof-of-Stake Systems" presented at AFT 2026 (Oct 6-9)
- —Co-authored by Paolo Penna of IOG and Manvir Schneider of the Cardano Foundation
- —Introduces a state-dependent reserve threshold with three distinct security regimes
- —Cardano draws 0.3% of remaining reserves per epoch for rewards, shrinking absolute payouts
Why it matters: Reserve size alone may be a misleading comfort metric: PoS resilience depends on reward disbursement mechanics and market volatility.
Source: Crypto Briefing