The debate over user incentivization in the crypto space continues, with a focus on the balance between attracting users and maintaining community quality. Incentives that compensate for temporary costs of immature projects are seen as beneficial, while those that attract users who wouldn't engage with a mature product are criticized. This distinction is crucial, especially in decentralized finance (DeFi), where liquidity rewards are justified by the inherent risks of new projects.
Critics argue that indiscriminate incentivization, such as paying for social media engagement, can lead to a superficial user base that disappears once incentives end. The emphasis is shifting towards creating genuinely useful applications, as seen in successful projects that prioritize organic user growth over speculative bubbles. The ideal approach involves turning users into investors by compensating them with protocol tokens, fostering a sustainable economic loop.
Crypto Incentives: Balancing User Growth and Quality
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