Understanding DAO Incentives & Rewards Better

1) How to lower the barrier to meaningful contribution: Because contributions to DAOs can come from anywhere, tools that qualify and quantify different types of contributions (e.g. bounties, DAO-specific metrics) can be used to create a shared understanding of priorities of how one can expect to be rewarded for different levels of participation. In... See more

For engagement flexibility, DAOs can create two tracks for contributors. One track would compensate contributors retroactively based on the value that they’ve created for the DAO. Commonly used mechanisms in this area include retroactive funding proposals — where contributors outline the value they’ve created in that period and make a commensurate ... See more

The rise of financial incentives In order to encourage participation in DeFi (decentralized finance), new DAOs offered financial incentives. Those who do not have financial incentives would not invest time, money, and energy in networks, vote on proposals to improve them, or care about their futures. Here are some examples that can help builders un... See more