In crypto, people talk a lot about the concept of incentive alignment. Different mechanisms for “incentive alignment” have emerged, including staking, vote-escrowed tokens (aka veTokens), and lockdrops. All of these are ways protocols can encourage participants to have skin in the game. The idea is that this skin in the game means the protocol’s interests will become partcipants’ interests.
Block-locked Tokens
Block-locked Tokens
Block-locked Tokens
In crypto, people talk a lot about the concept of incentive alignment. Different mechanisms for “incentive alignment” have emerged, including staking, vote-escrowed tokens (aka veTokens), and lockdrops. All of these are ways protocols can encourage participants to have skin in the game. The idea is that this skin in the game means the protocol’s interests will become partcipants’ interests.