DePINs Urged to Reform Incentives for Sustainable Decentralization
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The "static rewards trap" fails to incentivize contributors to improve a product long-term. Rewards should be dynamic based on geography, productivity, quality, and overall network progress.
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Generate genuine product demand by solving a real-world problem that decentralization can uniquely fix. Avoid speculative demand.
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Design dynamic rewards thoughtfully across 4 key dimensions geography, productivity, quality, and network progress. Don't frontload rewards.
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Open-source frameworks and learn from other projects' failures. Incentive design is challenging but critical.
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If builders stay focused on sustainable incentives and stakeholders hold them accountable, DePINs can decentralize critical infrastructure.