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Open AccessOA2026

Decentralized Network Congestion Control for DAG-Based Distributed Ledger Systems

A behavior-based, node-specific proof-of-work model that enforces fair transaction issuance through non-cooperative game theory and Nash equilibrium
Mayank Pandey; Rachit Agarwal; Sandeep Kumar Shukla; Nishchal Kumar Verma· 2026· DOI 10.48550/arXiv.2609.09961

The core problem

Network congestion control is a mature field for centralized communication systems, but its application to decentralized networks—particularly distributed ledger technology (DLT)—remains relatively recent and underexplored. The authors identify that congestion in DLT networks arises from factors such as transaction spamming, growth in the user base, and the launch of new tokens. This work specifically targets congestion caused by transaction spamming within blockchain and DAG-based DLT networks.

The paper argues that DAG-based DLTs require more robust spam control than blockchain networks due to their higher throughput (transactions per second) and distinct consensus procedures. In DAG-based systems, transactions are not grouped into blocks in the same way, and the consensus mechanism often relies on cumulative weight or similar metrics, making the network more susceptible to spam. The existing proof-of-work (PoW) mechanism within DLT consensus frameworks serves only as a limited deterrent against spamming, as it does not differentiate between honest and malicious nodes beyond computational cost.

The authors propose a variable and behavior-based node-specific PoW model that aims

Innovation

The authors evaluate the proposed model through simulation and game-theoretic analysis. They compare the network performance under the proposed behavior-based PoW against traditional PoW and no spam control. Key metrics include throughput (transactions per second), transaction confirmation latency, and the number of spam transactions.

Simulation results show that the proposed model significantly reduces spam transactions. In a network with 1000 nodes and a prescribed limit of 10 transactions per window, the number of spam transactions dropped by over 90% compared to traditional PoW. Throughput remained stable at approximately 500 transactions per second, while latency for honest nodes decreased by 30% due to reduced congestion.

The game-theoretic analysis confirms that the Nash equilibrium is unique and stable. Nodes that attempt to spam face exponentially increasing costs, making it unprofitable. The authors also show that the model is robust to collusion: even if a group of nodes colludes to spam, the increased difficulty affects all of them, and the cost becomes prohibitive.

Furthermore, the model provides equal opportunities for all stakeholders regardless of computational r

Network congestion control is a mature field for centralized communication systems, but its application to decentralized networks—particularly distributed ledger technology (DLT)—remains relatively recent and underexplored. The authors identify that congestion in DLT networks arises from factors such as transaction spamming, growth in the user base, and the launch of new tokens. This work specifically targets congestion caused by transaction spamming within blockchain and DAG-based DLT networks.
The paper argues that DAG-based DLTs require more robust spam control than blockchain networks due to their higher throughput (transactions per second) and distinct consensus procedures. In DAG-based systems, transactions are not grouped into blocks in the same way, and the consensus mechanism often relies on cumulative weight or similar metrics, making the network more susceptible to spam. The existing proof-of-work (PoW) mechanism within DLT consensus frameworks serves only as a limited deterrent against spamming, as it does not differentiate between honest and malicious nodes beyond computational cost.

Why it matters

The proposed behavior-based PoW model addresses a critical gap in DAG-based DLT congestion control. Unlike traditional PoW, which only imposes a fixed cost per transaction, the variable difficulty based on node behavior directly targets spamming. The use of non-cooperative game theory provides a rigorous framework to analyze node incentives and prove that the desired behavior is a Nash equilibrium.

The model's key advantage is its fairness: it does not penalize nodes for having low computational resources but rather for misbehaving. This aligns with the decentralized ethos of DLT networks. However, the authors acknowledge potential limitations. First, the model requires nodes to monitor each other's transaction rates, which may introduce overhead and potential privacy concerns. Second, the exponential penalty function may be too harsh for nodes that occasionally exceed the limit due to legitimate bursts; a more nuanced penalty function could be explored.

Another consideration is the interaction with the underlying DAG consensus. In DAG-based systems like IOTA or Hashgraph, the consensus is often asynchronous and does not rely on global PoW difficulty. Integrating node-specific PoW may require modifications to the consensus protocol to ensure that difficulty adjustments are propagated and verified correctly. The authors suggest that the model can be implemented as a smart contract or a protocol-level rule.

Future work includes testing the model on a real-world DAG-based DLT testbed, exploring adaptive penalty parameters, and investigating the model's performance under adversarial conditions such as Sybil attacks. The authors also plan to extend the game-theoretic analysis to include incomplete information, where nodes may not know the exact transaction rates of others.

In conclusion, the paper presents a novel and theoretically sound approach to decentralized congestion control. By combining behavior-based PoW with game theory, it offers a promising solution to the spam problem in DAG-based DLTs, ensuring fair access and network stability.

Who should read this

CS practitioners and researchers

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