Web3 playbook: How token incentives can bootstrap networks

 How do you “go to market” and convince potential customers to spend their money, time, and attention on your product or service? The response by most organizations in web2 — the Internet era defined by large centralized products/services like Amazon, eBay, Facebook, and Twitter, in which the vast majority of value accrues to

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But it should be noted, this incentive system does lead to a signaling problem. To keep people motivated to believe, work hard and spread these decentralized environments, it’s very helpful that the prices of the shares (ie., tokens, etc) and that triumphant vibe within the culture — all plausible evidence of the potential size of the prize and our... See more

Web3 is about the distribution of power and resources, not their accumulation. What drives the success of Web3 is the community because communication between its members is key for organizing themselves towards achieving a common purpose.

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