Realigning Incentives: How to Distribute Governance Tokens Effec…

Smart contracts assist participants in governing cooperatively in upcoming decentralized networks, drastically reducing coordination costs. DeFi and NFT communities face a major challenge in managing collective decision-making to optimize funds and operations. These revolutionary networks have aligned incentives and common interests without a singl... See more

-The heuristics have been weak — Governance mining distributions we’ve seen seem to prioritize scalability & decentralization over accuracy, making them decent at rewarding the long-tail of contributions but poor at properly compensating the most impactful contributors. Early on, a more centralized distribution mechanism is desirable.

So what can we do? To balance the influence of large and smallholders.Decentralized ID: to reduce gaming of quadratic weighting.As a measure of whether someone invested a minimum of time (a precious, limited resource) and gained enough context (enough to add value).If a threshold of recent engagement is met, token rewards are offered for voting/pro... See more