Simulation demonstration

When participants initiate a simulation, the tool displays a flow-and-stock diagram that includes epoch counts, average fees, reserves, and the treasury. These variables change according to feedback loops: higher transaction counts lead to increased fee revenue, but they also expand the ledger. Operators monitor when the cost of storing additional data exceeds the economic benefits of the increased fees. Graphs typically use colored lines or stacked areas to illustrate how each variable evolves over multiple epochs.

Drawing insights from these graphs allows stakeholders to determine whether treasury inflows keep pace with ledger growth or if hardware costs decrease sufficiently to support higher throughput. Observing these relationships enhances understanding of when fees may exceed storage costs and under what conditions stake pool profitability might stabilize or decline.