Background
On February 12, Ethereum co-founder Vitalik Buterin shared his views on the token incentive model used by a certain project to reward early adopters. He noted that while token incentives can attract users quickly, they may not lead to a high-quality community.
Sustainable Incentive Model
Vitalik proposed a more sustainable approach where revenue from paying users supports others, creating a balanced and fair incentive structure.
- Compensate early users for taking risks
- Avoid attracting only profit-driven participants
- Improve community standards and product feedback
Vision for Crypto Applications
He stressed that what the crypto space truly needs now are practical, user-friendly applications that solve real problems, not just growth driven by speculative narratives.