The Good Tech Companies - How Incentiv’s 26% Token Pool Could Change Who Gets Paid in Web3 Forever

Starting point is 00:00:00 This audio is presented by Hacker Noon, where anyone can learn anything about any technology. How incentives 26% token pool could change who gets paid in Web 3 forever? By a Sean Pondy, can blockchain rewards move beyond mining and staking? The idea that every participant in a blockchain network should be rewarded proportionally to their real contribution has been debated for years. Most chains reward miners are validators, while everyday users, developers, and liquidity providers often receive far less recognition in economic terms. Incentive, an EVM-compatible layer one blockchain, is entering its public phase with a model that claims to solve this imbalance.

Starting point is 00:00:39 Backed by TestNet activity from more than one. Two million wallets, the network's reward structure is designed to capture value from actual on-chain activity rather than passive capital. The company has formally announced that 26% of its dollar-cent token supply is being set aside for community rewards. This pool is intended to incentivize a widerange of network participation, from securing the network to simply engaging in transactions. At the core of incentives' economic design is what it calls the incentive plus engine. This system aggregates a portion of transaction value and fees from everyone chain action into what is termed a unified reward pool. This pool then air distributes rewards to contributors based on a contribution scoring system. In practical terms, the network is moving away from

Starting point is 00:01:25 fixed block rewards, which can dilute value over time, toward a performance-based structure. A minorspayout depends not only on securing the network but also on the economic throughput of the transactions they validate. Similarly, developers building popular DAPPs or liquidity providers facilitating trades would receive rewards in proportion to their impact. This approach ties blockchain incentives directly to network health and usage, potentially creating a feedback loop where the most value-generating participants are also the most rewarded. 26% of dollar cent reserved for community incentives. One of the most notable elements of incentives launch is the decision to preload 26% of the total token supply into the community

Starting point is 00:02:06 rewards pool. This allocation is designed to front load incentives in the early stages before transaction fees alone can sustain the system. The model has two phases. One, subsidy-driven phase, rewards are boosted through the initial allocation, encouraging activity while the network gains traction. 2. Self-sustaining phase, as transaction volumes grow, fees will replace the subsidy as the primary funding source for rewards. Additionally, Incentive has established a short-term growth fund to selectively support strategic initiatives or activities that could accelerate adoption during the launch period.

Starting point is 00:02:42 Early adoption indicators from the TestNet, Incentives Public TestNet, launched earlier this year, already attracted significant participation. The figures stand at 1.2 million wallets created, hundreds of thousands of TestNet challenges completed. 1.7 billion TestNet dollar T-C-E-N-T tokens claimed via FOSID. The adoption is partly driven by the network's focus on advanced account abstraction, which underpins several features designed to reduce onboarding friction and improve usability. Features aimed at lowering barriers. The technical design of incentive includes several integrated features intended to make blockchain use more accessible, unified token. Let's users pay gas fees in any supported token, not just the native dollar cent.

Starting point is 00:03:28 Paschi wallets, passwordless, device integrated wallets for secure and simple onboarding. Bundled transactions groups multiple actions into one signed transaction, simplifying complex workflows. Native decks allows token swaps within the protocol, supporting fee conversion and liquidity provision. Open SDK enables developers to integrate frictionless DAPSign in with minimal code. These features align with the broader industry push toward making blockchain interactions more intuitive for non-technical users. Final Outlook, incentives model represents a hybrid between traditional proof of work rewards and more holistic contribution-based systems. The early decision to allocate over a quarter of the total

Starting point is 00:04:12 token supply to the community is bold, but it raises long-term questions. Will the rewards remain appealing once the subsidy phase ends? Can contribution scoring remain fair and resistant to manipulation? How will this model handle governance disputes over what counts as a meaningful contribution? From a broader perspective, tying payouts directly to on-chain economic activity could encourage healthier network participation than purely speculative token holding. However, the success of this approach will depend heavily on how transparent. parent and auditable the contribution scoring system is in practice. If incentive can maintain fairness, prevent gaming of the system, and ensure thought on technical contributors are

Starting point is 00:04:51 equally valued, it could become a reference point for how blockchain networks distribute value in the future. Don't forget to like and share the story. This author is an independent contributor publishing via our business blogging program. Hacker Noon has reviewed the report for quality, but the claims here and belong to the author. Hashtag DYO thank you for listening to this Hackernoon story, read by artificial intelligence. Visit hackernoon.com to read, write, learn and publish.

The Good Tech Companies - How Incentiv’s 26% Token Pool Could Change Who Gets Paid in Web3 Forever

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