AVS Reward Model

Since Cambrian's modular structure allows for the deployment of protocols with varying orientations (from public to private solutions) and completely different usage models, as well as different requirements for validators, it is evident that a fixed percentage reward model for all projects is not suitable. Addi-tionally, in some cases, a fixed percentage, such as 10%, may exert too much influence on tokenomics depending on its design, and corporate permissioned solutions with their own set of validators and AVS may require the absence of tokens altogether.

Therefore, the most rational solution would be to continue Cambrian's modular approach and, in the case of the Reward Model for different restaker incentive mechanisms, Cambrian plans to implement various strategies that can offer more flexibility for developers, restakers, and AVS users:

• Fixed reward rate with a choice of fixed percentage by AVS: applicable in cases where, for example, the protocol receives a fixed income from users for using the protocol.

• Floating percentage rate: may be applicable for tokenomics with decreasing emission over time, in gaming projects, and protocols with governance to-kens.

• Ability to create complex models where a portion of user fees goes to developers besides AVS: applicable in cases where multiple applications can be launched on top of AVS.

• Absence of rewards: this can be useful for corporate solutions that do not require their own token and support AVS cluster infrastructure using Cambrian with their own funds. In this case, it can allow for the formation of a stable Inflow for Cambrian itself by providing ready-made AVS-as-a-Service infrastructure solution packages for corporate clients.

The mechanics of Reward Models and their modeling will be discussed in more detail in a separate document titled "Cambrian Rewards Models."