Blame It on the Incentives

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Avatar for Cain
Written by
4 years ago

Friday, June 26th, 2020

The read.cash team recently announced the end of featured communities and the handing out of points to moderators of those communities. Another way of putting it is that the incentive structure of the site has changed yet again. Don't get me wrong, I'm not complaining. In fact I find it refreshing that this team has been willing to try new things until they get this right.

But I'm not here to talk about the read.cash points system. What I really want to talk about is what I've witnessed about my behavior each time there's a new change. It astounds me how with every change in their incentive model, I find my behavior quickly changing in tandem.

When the site first started you primarily earned BCH through tips or affiliate fees, so I was writing article after article and promoting them on Reddit and Twitter because that was the best way to earn BCH. When the tips slowed down and the read.cash fund was launched along with the points system, I subtly changed my behavior to doing whatever earned me the most points and therefore the most BCH. I still wrote articles, but I was also commenting more, and tipping more since that earned points as well. Finally, when they started handing out points for moderating a good community, I found myself spending more time moderating than I did writing.

Now that the incentives for moderating have ended, here I am writing again, tapping away on my keyboard like some trained monkey.

What this demonstrates to me is the power of incentives.

It makes me think about people at their jobs and how much more motivated everyone would be if even a portion of their pay was based on getting things done. Imagine if you earned small amounts of money for every task you accomplished, for every problem solved, for every question answered. I'm convinced everyone would be working a lot harder and faster if that was the case.

I'm sure it's a lot more complicated than I make it sound, but I believe that giving people the opportunity to earn money this directly, and with as little friction as possible, is why Bitcoin Cash has the potential to change the world.

But in order to change the world, the network must first scale to accommodate as many users as possible. Here I'm going to mention something that might be somewhat controversial, but I believe the lack of, or misplacement of incentives in the BCH community is what's to blame for our stagnation these last couple of years.

People constantly complain about not fixing the DAA, or the chained transaction limit, or the lack of progress on implementing Avalanche, the list goes on. But what incentives have been put in place for protocol developers to work on each of these problems? You might argue "number go up" is the incentive. But I don't think that's enough. It might have been the case for the earliest BTC investors who were able to mine cheaply and accumulate thousands of coins, but despite all the talk of BCH being the real Bitcoin, the truth is that the BCH community is fairly new by comparison. What about those developers who only just discovered BCH and want to help it grow? Are they supposed to go out and buy a thousand coins and hope that their work is enough to make number go up? I don't think that's realistic. As much as people want to tout the recent flipstarter campaigns as being a success, I don't think raising ~$500,000 spread across four different node implementations is as big of a win as some want to claim. That's an average of $125,000 for each team, or roughly the equivalent of one entry-level engineer in silicon valley working on each node.

If we want BCH to scale, we need large teams of people working to solve these problems, not just a few people here and there working in separate silos. And in order to achieve that, the first problem that needs to be solved is the funding problem.

If you are a large BCH holder of a BCH business that is willing to fund development, let's do it right. Communicate with the people that can get the job done so there can be no ambiguity about what's being asked and what's being delivered.

Let's fix the incentives in Bitcoin Cash the way read.cash is trying to fix them on their site. It's not going to be easy, but without doing that first, our community is just going to keep wandering in the desert like we have been for these last couple of years.

Now if only I can figure out a way to earn BCH to be a better father, husband, son, brother, friend, human.

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Avatar for Cain
Written by
4 years ago

Comments

very well articulated, thanks for this

$ 0.00
4 years ago

Wow many nice comments. Hope you give us something better.

$ 0.00
4 years ago

This is indeed truth. In every new update of rules (point system)in Read.Cash, we try to adopt our self in that. If you could earn by moderating, you'll just moderate whole day. It's funny to think that mostly of users are here just to earn BCH and will do everything to get a $$ even if it takes to publish a very low quality content.

You're not the only one, Cain. Even me, that's my first goal here, but as time goes by, I Start to like writing again, to the point that I forgot that there's a point system.

$ 0.00
4 years ago

Hoping for the best for everyone

$ 0.00
4 years ago

Interestingly enough, I used readcash just as I use it now and never changed inbetween. You are right, though. Incentives are powerful and even though there might be people, who don't act on those for whatever reason, you can be sure, that generally the ecosystem gravitates toward it. Nudged by the incentive system.

$ 0.50
4 years ago

Iā€™m just greedy for BCH I guess haha.

$ 0.00
4 years ago

I wouldn't call it greedy. Everyone wants a reward. That's how humans are built. The important thing is that this need for reward leads to something positive (e.g. interesting articles on read cash). Greed is someone who wants more money without giving anything in return.

$ 0.00
4 years ago

Same me. With the difference that I did some translations in the beginning (but it was almost like a commission, I knew that btcfork would like it and that I would get satoshis for a translation)

$ 0.00
4 years ago

With an utopian vision, but can be achievable, because who knows? One can imagine that the incentives could even become a "universal minimum income". It would help so many people. To a lesser extent this is already the case..

$ 0.00
4 years ago

Appreciate, how you can reflect upon yourself so clearly. What is your mindset, enabling you this level of self-awareness?

$ 0.00
User's avatar pat
4 years ago

Hmm, I don't know that I'm anyone to talk about self-awareness. I'm just like anyone else trying to figure things out in this crazy world =)

$ 0.00
4 years ago

VERY WELL SAID

$ 0.00
4 years ago

Yeah.. this is so true..as the system changes we also have to change and adapt to it because then and only then can we get paid and also earn.we also need to work together not in silos like you mentioned in your article because only team work can yield result just like in an organization you need every one to perform their various duties to ensure proper and smooth running so likewise we also need to Perform our duties on this platform, not just to receive but also to give.

$ 0.05
4 years ago

Great article; honest and eloquently argued.

An interesting combination of self-reflection and a call to arms with a dash of humour thrown in.

A really joy to read and inspiring too.

Thank you Cain for sharing and all the best,

$ 0.00
4 years ago

If we want BCH to scale, we need large teams of people working to solve these problems, not just a few people here and there working in separate silos. And in order to achieve that, the first problem that needs to be solved is the funding problem.

so then why is NO ONE talking about the incentives to fund developers?? and I'm not talking about infrastructure, I mean SERVICES that add "VALUE" to the community.. Folks are furiously debating about why Avalanche hasn't been implemented (cuz we need to "scale"), when there are only like 3 or 4 quality BCH portals that exist today. I know Bitcoin Legacy isn't interested in BUIDLing SHIT for BTC, but Ethereum has 100s of "quality" web portals ALL adding "value", especially in the area of DeFi..

imo, the entire open-source culture needs to change from "free as in beer" to "fuck you, pay me" THEN, and only then do I believe BCH has a chance at solving its funding problems..

$ 0.00
4 years ago

Agreed. We don't even have a great simple open source wallet for BCH users.

$ 0.00
4 years ago

regardless of the recent issue, https://gitlab.com/pokkst/crescentcash is still my goto wallet for ALL my dev testing (I continue to use Edge as my daily driver) .. shout out to @pokkst for the great work he continues to do day-in-and-day-out šŸ‘šŸ‘

$ 0.00
4 years ago

Unfortunately I have an iPhone so can't use that one.

$ 0.00
4 years ago

It makes me think about people at their jobs and how much more motivated everyone would be if even a portion of their pay was based on getting things done. Imagine if you earned small amounts of money for every task you accomplished, for every problem solved, for every question answered. I'm convinced everyone would be working a lot harder and faster if that was the case.

I'm with you here. It's INSANE to me that at least small percentages of profits don't go to employees as a rule, if not payments per small job/action. Otherwise, you just get people to do the bare minimum. You see it so much in "back-of-house" jobs in the restaurant industry, for example. While front-of-house folks work harder for tips, line-cooks, prep-cooks, and dishwashers usually just don't want people to yell at them xD

What about those developers who only just discovered BCH and want to help it grow? Are they supposed to go out and buy a thousand coins and hope that their work is enough to make number go up? I don't think that's realistic.

I agree. The idea that this should be the default (and only necessary) incentive seems bonkers to me.

As much as people want to tout the recent flipstarter campaigns as being a success, I don't think raising ~$500,000 spread across four different node implementations is as big of a win as some want to claim. That's an average of $125,000 for each team, or roughly the equivalent of one entry-level engineer in silicon valley working on each node.

While that's not a huge amount of money in the grand scheme of things, I do think it's a HUGE success, because it's a good START =) As these teams prove themselves and provide more value, I think it's possible that more big players will start to invest in them using methods like Flipstarter.

(Also, remember that the teams that were funded provided their own budgets!)

$ 0.05
4 years ago

I just keep posting even if I didn't get any points from it because I don't expect that much of audience and also more tippers to tipped me, I just maintain what I started to keep me motivated but for real to keep us motivated is to earn points.

$ 0.00
4 years ago

Everyone is different. But I bet you the small chance that you could start earning here is enough of an incentive to have you participate. To say whatever you have to say. I'm starting to wonder if BCH can give us back our voice.

$ 0.00
4 years ago

Yeah, I wish that too.

$ 0.00
4 years ago

Its true.

$ 0.00
4 years ago

Great article. Learned a lot.

$ 0.00
4 years ago

I have liked your article which is really well written and personal. I am mostly agreeing with you, but experience show that "a priori" free rules market always at least need incentive because it is a kind of rules which make distinction on what is good and have to be incentived and what is bad and doesn't permit to earn.

Free market rules always fucked because most people does not have natural self-gestion skills.

It is also the reasons there is Law in every Country in the World since the oldest time.

P.S. : I also wanted to thanks you for tipping one of my latest article, that tip was my first one ;)

$ 0.00
4 years ago