8-1b3i Token rewards should taper off as the network grows

8-1b3f A blockchain economy must balance the supply (‘faucets’) and demand (‘sinks’) of native tokens to fuel sustainable growth

• More participants make a network more useful; once enough people are participating and network effects kick in, the need to offer incentives decreases

  • 5-1b1b1a1 Things can become easier the more complexity you have (Network effects = Power-law)
  • People who take a risk by contributing early, when a network’s success isn’t assured, should gain the most
    • This isn’t good just for users and contributors. It’s also good for the networks.
      • 6-3b3f Blockchain network ＞ Protocol network ＞ Corporate network
        • Specifically, blockchain network can fund itself (which protocol network couldn’t)
          • 6-3b3e Everyone benefits in blockchain and protocol networks

• This can also help break the rich-get-richer tendency in corporate networks, where only the employees and investors, not the users, see upside when a network succeeds.

  • 8-1b3g Poor faucets-sinks design can lead to the problem of ‘only the rich can deploy’
    • 5-1b1b1a1a Pareto principle (or law of the vital few) - 80% of the effects come from 20% of the causes
      • 5-1b1b1a1 Things can become easier the more complexity you have (Network effects = Power-law)
  • Costly speech means only the wealthy speak freelydevelop
  • Especially so when the company is not listed!