DAOs, Tokens, and Goodhart's Forest

At a high level, the only way to address this problem is to link token incentives to network utility, i.e. ensure that users can only receive token incentives if they add value to the network. In other words, rewards need to be restricted to specific, desirable actions, not just adoption. 

Like the time when Braintrust’s token launched on Coinbase and traded up to above $40, and armies of bots “watched” the short videos in the Braintrust Academy library in order to pick up the BTRST tokens Braintrust offered to incentivize people to learn more about the network. When incentives are baked into everything and backed with a token, you n... See more