Non-Financial Incentives

Financial incentives are the obvious reasons for participation in the Gora ecosystem. Non-financial incentives (NFI), however, are another important tool that would incentivize long-term, honest participants in the ecosystem and disincentivize bad actors.

Since the Gora ecosystem will be continuous and dynamic, and technological upgrades are certain to happen over periods of time, it is hard to design a mechanisms that takes into account all future possibilities. Participants that feel they can influence the long term direction of the ecosystem would likely be incentivized to participate more so that they can maximize their own long term utility.

The key incentivization/disincentivization mechanism is the Allocation Mechanism. How rewards are distributed can incentivize good actors to participate, while disincentivizing bad actors. These rules are usually hard coded. Although actual rewards are a financial incentive, how those rewards are allocated can incentivize good actors to participate, while making dishonest participation unattractive.

This can be done via voting protocols, where proposals on the direction of the ecosystem are put towards the participants. These voting protocols need to ensure fairness, so that the participants most affected by a honest/dishonest environment have a bigger say than participants whose only interest is short term financial gains. The voting protocol is usually non-automated.

GoraNetwork's DAO based voting mechanism is a work in progress. Expect this page to be updated frequently.