Metastablecoin Fragmentation (updated)

A fundamental problem for decentralized systems like permissionless blockchains is that their security depends upon the cost of an attack being greater than the potential reward from it. Various techniques are used to impose these costs, generally either Proof-of-Work (PoW) or Proof-of-Stake (PoS). These costs have implications for the economics (or tokenomics) of such systems, for example that…