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Economicsbeginnerlesson

Incentive Design

Learn

  • Incentives shape behavior: rewards and penalties guide what people and bots do.
  • Good design aligns incentives with desired outcomes.
  • Misaligned incentives lead to gaming and failure.

Do

Pick one mechanism (e.g. staking, liquidity mining). List one desired behavior and one way incentives might misalign.

Reflect

  • Why do many token incentives fail long-term?
  • How would you test an incentive design?
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