1/ This is an interesting idea. Leaving aside the issue of whether this would actually stop the rise of altcoins, I doubt that in-protocol incentives for future development would be feasible.https://twitter.com/naval/status/985018594252742656 …
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8/ In effect, this means that development goals/roadmap will ultimately require *subjective human inputs*. Who’s to create development goals? Who’s to define judging criteria? This is all fuzzy stuff that cannot be automated away / embedded into the protocol.
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9/ TL;DR: In-protocol incentives only work if the goal can be mathematically defined & computationally verifiable.
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10/ One more food for thought: there is another aspect to incentives & that is whether designed incentives can truly bring the intended effects. There’s a long history of human-made incentives that ended up producing undesirable outcomes. https://en.wikipedia.org/wiki/Perverse_incentive …
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11/ In Bitcoin’s case, it’s clear how block rewards (and later transaction fees) help secure the network. The effort spent chasing the rewards is directly linked to network security. 100%.
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12/ But it’s not always so simple. An example of a perverse incentive is Ethereum Casper’s concept of “inactivity leak”. In trying to incentivize nodes to stay online, you might inadvertently *disincentivize* them instead.https://twitter.com/TuurDemeester/status/981720971223629825 …
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13/ A similar argument can be made for any protocol that fancies the idea of embedding governance into the protocol & have stake holders vote on protocol changes. Democracy will never produce a good engineering system. It’s akin to asking the mob on how to design a space shuttle.
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14/ The more complex the rules, the harder it is to ensure that the arising dynamics match exactly what you want, or not have unintended effects.
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End of conversation
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