Impact

So using specific metrics doesn’t work to surface value because those can be easily gamed. Using popularity doesn’t work for similar reasons. But rewarding projects retroactively based on their impact is a promising path if the review process is scalable.

Why not then scale the review process by putting the right incentive structure in place?

Thanks to the open social graph, we have an abundance of data on user interactions (& onchain activity). A network can use this data to reliably determine which users are highly aligned with it. It can then offer these users an incentive to look for and review network activities (and dev work) that grow the ecosystem.

If the network rewards users proportionately to the value they surface, it can get users to proactively surface all contributions based on their impact - much like investors proactively look for undervalued stocks in the market. If users try to game the system however they can lose reputation - and future earnings. (Part IV)

Developers are much more likely to focus on value creation for a network if they see that the network rewards contributors based on the impact they make (and not based on engagement farming for grant votes, or maximizing some arbitrary metric).

The networks that can best surface contributor value are therefore the ones who will attract the most talent and get the most growth.

The best path to get there would be by combining retroactive funding (where the impact is clear) with a social coordination layer that is aligned with the network, and has an effective incentive structure to surface value at scale. (Part V)

Full article 👇

Working on /impact ||


Abundance Economy book: book.abundance.id

Developers are much more likely to focus on value creation for a network if they see that the network rewards contributors based on the impact they make (and not based on engagement farming for grant votes, or maximizing some arbitrary metric).

The networks that can best surface contributor value are therefore the ones who will attract the most talent and get the most growth.

The best path to get there would be by combining retroactive funding (where the impact is clear) with a social coordination layer that is aligned with the network, and has an effective incentive structure to surface value at scale. (Part V)

Full article 👇
https://paragraph.xyz/@abundance/why-decentralized-networks-need-a-social-layer 
