Blockchain's core design makes money unstable, not decentralized

The Bank for International Settlements says that the way blockchains are designed actually makes money less stable. This happens because the system rewards validators in a way that forces new, weaker blockchains to constantly appear, breaking up the network.

Everyone assumed that more blockchains meant more decentralization and more stable money. It turns out, the opposite is true. The paper argues that the very 'tokenomics' that power these systems create a fragmented landscape where no single digital currency can achieve the network effects that make traditional money valuable.