Routed Closure: Rethinking Value Capture in Decentralized Ecosystems
2026-05-25 • Computers and Society
Computers and Society
AI summaryⓘ
The authors explain that in decentralized systems, even if people pay fees or tokens increase in value, it doesn't mean the important contributors like miners or validators are actually getting paid enough. Unlike centralized systems where money can be easily shared via budgets or salaries, decentralized systems need a clear, traceable path to ensure value reaches the right people. They introduce a way to check if value really reaches these key participants, using something called Route-Admissible Value and a protocol to confirm it. By comparing several platforms, the authors show that just having revenue or high token prices doesn't guarantee sustainable rewards for those who keep the system running.
decentralized ecosystemvalue captureincentive fundingminersvalidatorsRoute-Admissible ValueExternal Value Routing Closuretoken economicsprotocolssustainable incentives
Authors
Xubin Luo
Abstract
A decentralized ecosystem can capture value and still fail to fund the actors who keep it running. Users may pay fees, tokens may appreciate, issuers may earn revenue, and protocols may burn value, but none of these facts by itself shows that authors, miners, validators, suppliers, storage providers, or other critical participants are actually compensated. This paper argues that traditional value-capture analysis often assumes a centralized pool: once value is captured, it can be reallocated through budgets, contracts, payroll, or managerial discretion. Decentralized ecosystems do not have this default pool. They require routed closure: captured value must pass through a verifiable route to a specified critical incentive recipient, and it must be sufficient relative to that recipient's reward requirement. We formalize this distinction through Route-Admissible Value and operationalize it with the External Value Routing Closure protocol. A contrast set including YouTube, Steem/Steemit, Bitcoin, Ethereum, Aave, Filecoin, USDC, and XRP shows why revenue, fees, burns, token prices, or market capitalization should not be mistaken for sustainable incentive funding.