Incentive Design
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Incentive Design
The thesis for value accrual in the social token ecosystem is straightforward.
Social token platforms with strong token economic models ā that directly capture value from social tokens ā will have the greatest opportunity to accrue revenue and value from social tokens.
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Social-Recognition versus Financial Incentives? Exploring the Effects of Creativity-Contingent External Rewards on Creative Performance
academic.oup.com
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)
descriptiontwitter.com
Iām increasingly of the belief that incentive design is the most important problem to work on. Humans are good at overcoming obstacles when they have reason to do so ā the worst problems tend to be ones of cooperation, not technological or scientific understanding.
descriptiontwitter.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 š„twitter.com