This is definitely a hard topic to solve effectively. Builders (all role-encompassing) in DAOs need to be compensated transparently, fairly, above trad-market rates (to account for the increased risk). All while ensuring mid-long term builder<>community alignment. a/ 🧵

The zen of compensation: for the type I people, compensate them fairly and more than average and take the money of the table.

self determination theory - DEci and and Ryan people have three innate psychological needs : autonomy relatedness and competence, When they have that they feel motivated happy and productive,

consider nontangibel rewards - praise and positive feedback are much less corrosive than cash and trophies

Any intrinsic reward should be unexpected and offered only after the task is complete. in other words where if then rewards are a mistake, shift to now that rewards.

Dan Ariely research in India Madurai, when the task called for rudimentary cognitive skills, larger rewards led to poorer performance. but as ing as the task involved only mechanical skill, bonuses worked as they would be expected the higher the pay, the better the performance

the starting point - the baseline rewards should be enough and fair - the salary , wages, benefits. Without a healthy baseline, motivation of any sort is difficult and often impossible. (FAIR keyword is important here)

“What rewards and punishments do is induce compliance, and they do very well. If your objective is to get people to obey an order, to show up on time and do what they’re told, then bribing or threatening them may be sensible strategies. But if your objective is to get long-term quality in the workplace, to help students become careful thinkers and ... See more

People will typically be more enthusiastic where they feel a sense of belonging and see themselves as part of a community than they will in a workplace in which each person is left to his own devices