daos

HIGHER

$higher holders are incentivised to support projects building on higher because it’s good for their bags

I think we need to get beyond this thinking, because I don’t think it works sustainably in practice.

In my experience, whales of most token-based communities don’t want to put time/effort into supporting those communities, even though they are bag holders. 

It honestly makes sense when you think about it.  Even though they financially support projects with their liquidity, they are also the ones who will leave and go somewhere else if the token isn’t performing - even when the community is accomplishing their purpose.  That’s how they got to be whales in the first place.

Not hating on whales, just pointing out “holders are incentivized to pump bags” doesn’t work in an environment with frictionless asset trading.

Startup artist seeking inspiration.  Champion of /bcard

The incentive I’m describing definitely exists. It just has to be greater than the other incentives it’s competing with in the market for it to have the result everyone theorises about (and in many cases it’s not)