Behavioral Crypto-Economics: The Challenge and Promise of Blockchain Incentive Design

In 2009, Satoshi Nakamoto designed Bitcoin to align the incentives of computers. In 2018, we are building multi-billion dollar blockchain projects, incentivizing humans using the same principles. We are assuming the efficient market hypothesis and the wisdom of the crowds. But what happens when the crowds are not that wise?

Elad Verbin
Mar 16, 2018 · 10 min read
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1. Introduction: Bitcoin, Behavioral Economics, and Cryptoeconomics

Incentive design is considered one of the killer features of blockchain systems


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Figure 1. Qualitative scatter plot of decentralized systems by their automatibility and size of their Action Space

2. From Satoshi to Steemit

Blockchain incentive design needs
public policy experts as well as scientists.


3. Building Robust Incentive Systems?


Footnotes and Edits

Lunar Ventures

is a seed-stage deep-tech software VC fund, run solely by…

Elad Verbin

Written by

Berlin. Computer Scientist & Algorithms developer. Invests in pre-seed algo-tech: ML, blockchain, zero knowledge, ... Partner @ Lunar Ventures

Lunar Ventures

is a seed-stage deep-tech software VC fund, run solely by R&D experts, investing into globally ambitious algorithmic startups across Europe.

Elad Verbin

Written by

Berlin. Computer Scientist & Algorithms developer. Invests in pre-seed algo-tech: ML, blockchain, zero knowledge, ... Partner @ Lunar Ventures

Lunar Ventures

is a seed-stage deep-tech software VC fund, run solely by R&D experts, investing into globally ambitious algorithmic startups across Europe.

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