Graph Value

Graph Value is the protocol’s epoch-based “economic evaluation surface.” It aggregates ledger facts (executed activity) and snapshot-relative interpretations (diffusion influence) to drive incentives.

Introduction to Graph Value

In Local Protocol, Graph Value measures both economic activity and network influence for each participant, but it updates once per epoch (not continuously per transaction). Diffusion influence is defined over the committed snapshot for that epoch and can be consumed through bounded claims.

Components

For participant during epoch :

: transaction volume (ledger fact; aggregated from executed edges)
: diffusion influence on snapshot in market context (snapshot-relative; not a ledger fact)
: reputation score (disputes, proofs, completion history)

Epoch update rule

Graph Value is updated once per epoch:

Where:

is a smoothing factor
are policy weights
norm denotes protocol-defined normalization and clipping

How is consumed

The protocol consumes diffusion through accepted optimistic claims and bounded epoch-level accounting:

diffusion appears in the system through accepted optimistic claims and bounded epoch-level accounting
large or high-impact claims can be subjected to stronger sampling and higher bonds

Per-transaction reward claim (sketch)

For a transaction with amount , define a base reward:

and a diffusion-based multiplier:

Then the user-claimed reward is:

Where and are Monte Carlo estimators of market-relative diffusion scores on the committed snapshot. The estimator is protocol-defined and must be transcript-verifiable.