“Stop the Risk, Not the Distribution” Model

(A Risk-Responsive Framework for On-Chain Governance)

0. Executive Summary

This proposal introduces a DRep reward framework that:

• Does not engineer an ideal distribution
• Does not penalize popularity
• Fully respects delegation as market choice
• Intervenes only when systemic risk conditions are met

The goal is to preserve:

• B. Attack Resistance
• C. Distribution Depth

Under normal conditions, rewards remain fully proportional to delegated stake.

Only when concentration becomes structurally risky — and is accelerating or accompanied by participation shocks — does a limited, rule-based safety brake activate.

This is not redistribution.

It is governance risk management.

1. Background

Delegation systems naturally concentrate over time due to: