Incentive Design

Exclusivity is a Double-Edged Sword – there are diminishing returns to growing an exclusive community. The Social Token Paradox by @gaby_goldberg got me thinking about how socials tokens based on exclusivity might get trapped in a cycle of growth and diminishing social value.

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👇

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 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/