Binomial components

Key Ideas

Binomial introduces two key ideas: pooled security via restaking and free-market governance. These mechanisms extend the security of the BNB Chain to other systems, allowing validators to reuse their staked assets to secure additional services. By implementing a flexible, market-driven governance model, Binomial eliminates inefficiencies tied to traditional rigid governance structures, enabling a more adaptable and decentralized ecosystem. This ensures that security scales across all the BNB Chain ecosystem participants, while governance becomes more dynamic and responsive to the needs of the network.

• Shared security via restaking: Binomial introduces a mechanism where BNB validators can extend security to additional modules by restaking their staked BNB, instead of requiring each module to rely on its own tokens. Validators opt into these modules by granting the Binomial smart contracts the ability to impose extra slashing conditions. Validators run additional node software for the modules, providing security and validation services, and earn extra revenue. This model expands the security scope to various blockchain applications, from virtual machines to consensus protocols and middleware, enabling deeper crypto-economic security across the BNB Chain ecosystem.

• Open-market governance: Binomial implements an open-market mechanism that governs how its shared security is allocated from validators to AVSs. Validators can freely opt into or out of modules based on incentives, while modules must provide sufficient rewards to attract validators. This opt-in model allows new modules to leverage heterogeneous validator resources, optimizing security and performance. It complements the stable governance of BNB Chain with a flexible, market-driven approach for introducing new capabilities, empowering validators to choose the most rewarding and secure modules while enhancing overall governance efficiency.

Leveraging these ideas, Binomial functions as an open marketplace where Actively Validated Services (AVSs) can rent shared security provided by BNB Chain validators through restaking.

Such a marketplace enables AVSs to benefit from the decentralized, crypto-economically secure resources that validators offer, while allowing validators to select which services to support, based on incentives and potential risks. This structure fosters a dynamic ecosystem where security can be allocated efficiently across various decentralized applications and modules, further decentralizing and expanding the BNB Chain ecosystem.