Incentive Design

DAOs are laboratories for governance. And they’re the ultimate playground for coordination games. Once we solve governance and coordination, the true power of the Internet will be unlocked.

airdrops 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?

Only launch a token when you have figured out: 1. How the community can participate towards meaningful objectives for the network (give tokens for work to be done) 2. Who to distribute ownership to (making sure you are distributing ownership to those that create the most value)

0/ Token incentives are a popular way to distribute ownership to people that provide a useful service But as we've seen, some of these distributions are easy to game and are less effective in hitting their key objectives Here's my framework for thinking about this 👇

The most existential question in crypto: what will be the relationship between tokens and communities? At stake: can DAOs bring virtue back to scaled organization? Or will they accelerate the economics-only mentalities that have been corroding society? A way-too-long-🧵👇