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 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

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)

There’s this cool idea in software that you “ship your org chart” called Conway’s law: “Organizations, who design systems, are constrained to produce designs which are copies of the communication structures of these organizations” I’d offer a similar law for investors: “you ship your capital... See more

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?