Blockchain Incentive Structures: What they are and why they matter

The blockchain community understands that blockchains can help  align incentives  among a tribe of token holders. Each token holder has   skin in the game . But the benefit is actually more general than simply  aligning  incentives: you can  design  incentives of your choosing, by giving them block rewards. Put

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Incentives are powerful. But getting incentives right is hard. 
Communicating intent is hard. 

Blockchains can help align incentives among a tribe of token holders. Each token holder has skin in the game. But the benefit is actually more general than simply aligning incentives: you can design incentives of your choosing, by giving them bloc... See more

Incentive DesignTokenomics are a tool for aligning the incentives of participants in a network. It is extremely important to identify what behavior is required from each participant in an ecosystem in order for the network to achieve a virtuous cycle. Equally important is designing suitable token incentives that encourage the desired market behavio... See more

Social tokens have shown their efficiency to incentivize individuals to share their skills with others. Well-designed incentives are more than crucial as they can make your project tremendously grow. Social Tokens are best used when they scale or incentivize coordination and engagement between community members. Incentives are ideal when it's mutua... See more

 Part 1 - Introduction Mechanism Design - Programming human behavior through carefully designed incentives. Humans are goal-oriented machines that react to incentives. Incentives are produced by economic games that can be crafted and engineered. So we humans do something to reach a goal, and one of the most unifying goals is money. So we desi

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I often hear people in the blockchain space assert some form of the following argument: if a platform creates a native token, such as a utility token that can be used to purchase services provided on the platform, the creation of the token by itself will align the incentives of users to act in the best interests of the platform. For example, someon... See more

One of the most powerful features of crypto-economic protocols is their ability to create incentive structures that allow anyone in the world to permissionlessly contribute to a set of shared objectives. These incentive structures can be finely tuned to facilitate large-scale coordination to achieve specific goals. This represents a step-function i... See more