Vitalik shares his views on user incentives in crypto projects: focus should be on developing practicality rather than indiscriminately expanding the user base.
Mars Finance News: On February 12, Ethereum founder Vitalik published a detailed article outlining his views on user incentive mechanisms for crypto projects. Vitalik believes that incentive mechanisms should distinguish between two scenarios: compensating for the temporary costs during the early, immature stages of a project is beneficial, while attracting users who will not use the project once it matures is harmful. Many decentralized finance liquidity rewards are reasonable because they compensate for risks such as hacking or team fraud in new projects. Conversely, paying users to post tweets for attention is a wrong approach, as such incentives may lead users to sacrifice content quality for maximum gains. Vitalik emphasizes that an ideal incentive mechanism should precisely compensate for the temporary shortcomings of the protocol, which will disappear as the protocol matures, while not attracting users who are unlikely to stay. Successful applications should focus primarily on developing practicality rather than indiscriminately expanding the user base through payments.
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Vitalik shares his views on user incentives in crypto projects: focus should be on developing practicality rather than indiscriminately expanding the user base.
Mars Finance News: On February 12, Ethereum founder Vitalik published a detailed article outlining his views on user incentive mechanisms for crypto projects. Vitalik believes that incentive mechanisms should distinguish between two scenarios: compensating for the temporary costs during the early, immature stages of a project is beneficial, while attracting users who will not use the project once it matures is harmful. Many decentralized finance liquidity rewards are reasonable because they compensate for risks such as hacking or team fraud in new projects. Conversely, paying users to post tweets for attention is a wrong approach, as such incentives may lead users to sacrifice content quality for maximum gains. Vitalik emphasizes that an ideal incentive mechanism should precisely compensate for the temporary shortcomings of the protocol, which will disappear as the protocol matures, while not attracting users who are unlikely to stay. Successful applications should focus primarily on developing practicality rather than indiscriminately expanding the user base through payments.