Incentive Design
sari and
Incentive Design
Airdrops are inefficient token distribution mechanisms since they don’t measure how valuable of a contributor a token recipient is
Why reward a token to someone if they aren’t going to contribute to the network?
We need to be better than just rewarding early users
brian flynntwitter.com
building sustainable networks in crypto is especially hard because the incentives are often short-term oriented
2 solutions to enable sustainable networks:
- token streaming/vesting (ie. @Superfluid_HQ)
- milestone based token rewards (ie. @UMAprotocol KPI... See more
Zachtwitter.comairdrops are cool - we love the "free" $, but bootstrapping a community around a token drop does little more than gather a community of speculators, rather than actual users.
1) do token holders care about the community?
2) what utility is associated with holding the token?
Jad Esber 💥twitter.com
Exclusivity is a Double-Edged Sword – there are diminishing returns to growing an exclusive community.
The Social Token Paradox by @gaby_goldberg got me thinking about how socials tokens based on exclusivity might get trapped in a cycle of growth and diminishing social value.