Thread by @haydenzadams on Thread Reader App

@sariazout: In theory, crypto makes it possible for users to partake in the success of the products and communities they are part of. In practice, token-based economies are very difficult to design. We’re going to see a lot of trial and error. Some challenges I'm seeing:

Early versions of token distributions have led to unsustainable dynamics wherein speculators are rewarded instead of those who are adding consistent value to networks through actual usage.

0/ Token incentives are a popular way to distribute ownership to people that provide a useful service But as we've seen, some of these distributions are easy to game and are less effective in hitting their key objectives Here's my framework for thinking about this 👇