Decentralized Systems Prove Incentives Can Be Both Private and Rational

Computer scientists publish economics paper on decentralized systems. EIP-7702-style canonical results face limitations due to privacy preservation. Incentive compatibility is possible in decentralized systems with private base-layer information, forcing trade-offs between incentives and ex post verifiability. A key observation: preserved privacy enables agents to rationally coordinate without protocol observability, creating cooperation incentives not present in direct-mechanism models.