Building thriving communities by creating the right balance of incentives
Healthy communities need solid incentives to thrive- especially in a bearish market. Companies give bonuses to high-performing employees. Friends throw parties for each other and care for one another when things go astray. Societies offer tax reductions for charitable works. Whether the incentive is financial, social, or moral, the reward motivates one’s behaviour and provides value. While it may not be referred to so explicitly, the incentives in the blockchain communities are what lead projects to success. Features or products for a project may be cool, but it’s wise to look at the system strategically and determine if the incentive structure succeeds or not.
How does DAO-tooling can build stronger communities & empower participants in a downtrend market?
DAOs, or decentralized autonomous organizations, have tools called DAO-tooling. In a DAO, creators, contributors, and observers govern and vote on decisions related to the organization. They express their opinion and bring about specific changes. Also, DAOs allow for full transparency of a treasury. The DAO agrees on crowdfunding, salaries, and payouts based on immediate actions from programmable smart contracts. Finally, DAOs compensate individuals based on the value provided through tasks, such as promotion, expert feedback, and technical skills.
Many Web 3.0 projects fail due to a lack of foresight. Blinded by a singular goal, they cannot see the priorities or insights of the community to which they aim to serve. Lack of incentives makes it difficult to launch or sustain healthy growth of otherwise well-conceived projects. More mature projects with healthy communities offer plenty of reason to join: a functional token, a sense of prestige and identity, etc. However, early-stage projects do not have the proper tools or insights to get past the first growth stage.
A DAO will endure or fail based on the activity of its community. Therefore, if the primary incentive is to earn money, then there will never be enough money for everyone in the community. Likewise, if the principal motivator is to become influential in the community, then it will always be too loud in the room to hear other opinions. Most tragically, if the only driver for a project is to create something morally righteous, then the realities of the more ambitious will speed past its advancement.
How can a DAO community thrive in the long term?
The most successful DAOs look at the project holistically, providing a variety of ways to earn, identify, and grow alongside projects. They do this by focusing on making everyone involved a driver rather than a passenger in the project. For example, reBaked is a project that directly addresses the issues facing many Web 3.0 startups. Algorithm and incentive-mechanism specialists created reBaked to attack the qualms of varying motivations from many angles. Primarily, reBaked seeks to give contributors long-term incentives for their work. Every contributor gets a fair base payout and receives a stake in the project for their contributions. Even enthusiasts, who cannot or do not have the time or skills to contribute in tactile ways, can earn based on their intellect and suggestions. Also, users who want to enjoy and promote the product have play-to-earn opportunities.
The project’s core product features enable and foster massive growth for early-stage Web 3.0 ventures. Success will not happen overnight or because of hype but due to the intentionality of its incentive mechanisms. So, when looking at platforms or projects to join, look beyond the native token and into what gives it value, or rather, why the community gives it value. reBaked is building a community with many reasons to start there, thrive there, and stay there.
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