Pearl Research Labs(@prlnet):A common critique on Proof-of-Useful-Work is that the zero marginal cost of mining drives the network’s security budget and price to zero. A paper just released by Rafael Pass, a renowned cryptographer at @Cornell /@TechnionLive and research scientist at Pearl Research Labs proves why this argument is flawed. By analyzing the equilibrium dynamics of PoUW, it shows not only that Pearl’s security budget (and hence price) are at least as high as Bitcoin, but in fact that Pearl will increase the SIZE of the global AI inference market, via Jevons Paradox. https://t.co/hxRGlC3AI2 @initc3org

2026.06.08 16:43

A common critique on Proof-of-Useful-Work is that the zero marginal cost of mining drives the network’s security budget and price to zero. A paper just released by Rafael Pass, a renowned cryptographer at @Cornell /@TechnionLive and research scientist at Pearl Research Labs proves why this argument is flawed. By analyzing the equilibrium dynamics of PoUW, it shows not only that Pearl’s security budget (and hence price) are at least as high as Bitcoin, but in fact that Pearl will increase the SIZE of the global AI inference market, via Jevons Paradox. @initc3org