Realigning Incentives: How to Distribute Governance Tokens Effec…

Incentive DesignTokenomics are a tool for aligning the incentives of participants in a network. It is extremely important to identify what behavior is required from each participant in an ecosystem in order for the network to achieve a virtuous cycle. Equally important is designing suitable token incentives that encourage the desired market behavio... See more

Yield farming Governance tokens could be distributed to users instead of developers and investors. Through yield farming, users receive tokens representing ownership for lending, borrowing, staking, or asset liquidity. Protocol owners can sell it in addition to accumulating it and hoping it will increase in value. If major banks gave you a small sh... See more

Governance rights face similar challenges with both fungible and non-fungible tokens: ownership naturally tends to have a power-law distribution so the question becomes: what do you do about whales? This recent essay by Vitalik paints a clear picture for why this will become an increasingly problematic issue for DAOs, both in terms of incentive mis... See more

Governance - How do you assure fair governance and ensure the funds are distributed to the right projectS? What rights do you give to token holders? What will be the Internal economics of your project? Governance is key to create a truly decentralized Organization.