Our vision
TL;DR: Pacts aims to achieve a frictionless value transaction infrastructure between projects and valuable users.
Crypto incentives have the potential to align users and projects symbiotically by rewarding early supporters with project equity. Traditional methods, like redistributing shares, are impractical on a global scale. Token distribution can enhance network effects but has often led to adversarial dynamics, where users exploit incentives without organic engagement.
Challenges
Current crypto incentives often suffer from adverse selection, with predatory users exploiting campaigns. This is due to a focus on local reputation, where users start from zero and earn incentives based on specific actions which can be easily gamed. This shortsighted focus on local reputation reduces the effectiveness of incentive programs and opens projects to exploitation.
Effective incentives model
Our marketplace model for onchain incentives addresses these issues. Users offer their attention, time, and liquidity, while projects bid for this attention. The value of attention would be determined by factors like liquidity, onchain history, and social reach. This model would:
Find fair value for users or user types.
Reward organic behavior.
Disincentivize sybil attacks by valuing longer onchain histories and valuable actions.
Implementation
The Pacts marketplace guides users to new products and protocols, making user acquisition more efficient. Unlike current models, which often retroactively change rules, Pacts offers a transparent value exchange: "Based on your profile, we value your attention at X. Would you like to try out our product?" This fair approach aligns with the spirit of crypto and ensures that users receive fair value for their engagement.
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