Incentive Design
sari and
Incentive Design
For products to work at scale they need sustainable business models and networks. Would love to see more discourse in web3 about the complex financial incentives conflicts that we’re going to see if the movement goes beyond DeFi/trading-related use cases. A few examples👇
Aaron Levietwitter.com
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.combuilding 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.comOne thing that might surprise you about dominance is how companies get it. You might think it comes from rapacious win-at-all costs business practices, or from raising large amounts of money to snuff out competition. But we’ve found that the primary source for a company’s dominance is whether it designs its product and business model to be... See more
