Incentive Design

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-🧵👇

Does crypto improve distribution for creators? Maybe, maybe not (thread)

I’m 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 — the worst problems tend to be ones of cooperation, not technological or scientific understanding.

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… Show more

Prediction: Incentive designer will be a new title in web3. I think of it as a product designer that can draw on principles from economics/tokenomics, psychology, and engineering. Incentives govern everything!

Prediction: virtual economist will be one of the most in-demand jobs of our time 👩‍💼🔥 As web3 grows and games become virtual economies where millions live and work, designing systems where users feel rewarded for time spent will be a critical skill Short thread 👇

i luv airdrops but token incentivizes aren’t a replacement for: * core product value * engagement / retention * organic growth * intrinsically motivated community * active dev ecosystem (especially in consumer apps)

The thesis for value accrual in the social token ecosystem is straightforward. Social token platforms with strong token economic models – that directly capture value from social tokens – will have the greatest opportunity to accrue revenue and value from social tokens. 1/

Critical Q for consumer social founders: are you building a content or context network? The answer should drive your choice of KPIs, growth strategy, and resource allocation. Here's why 👇

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 options) what else?