Disbursement incentive approaches

:bust_in_silhouette::moneybag: Contributor time based incentives are a great way for a disbursement process to:

  1. Reduce budgeting complexity
  2. Reduce voter decision complexity
  3. Reduce governance complexity
  4. Reduce game theory risks

:arrow_right: Incentive approaches - Disbursement

:1234::moneybag: Using milestone budgets can add a large amount of complexity for contributors by increasing the risks around honest actors being under compensated and risks for the community around contributors trying to exploit the process to get over compensated.

:moneybag::arrow_right::bust_in_silhouette: The majority of incentives disbursed in Web3 ecosystems go towards compensating contributors for their execution efforts. The complexity and risks around budgeting and handling incentives increases as the incentive gets moved further away from the contributors that will be receiving them.

:green_heart: We create knowledge resources about treasuries as a public good, follow our resources and socials - https://linktr.ee/web3association

:new: Updated incentive approaches! We’ve added contribution flexibility as another important factor that should be considered - Incentive approaches - Disbursement

:bulb::dart: Ideas and priorities can change over time. New information emerges and community preferences or the environment can change. Contributors benefit from being able to respond to these changes.

:rock: Incentive approaches with lower flexibility can make it more complex for contributors to help with many impactful initiatives.

:man_cartwheeling: Flexible approaches can help with enabling contributors to more quickly allocate their efforts towards initiatives that can generate more impact.

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:new: Income stability has now been added as another factor for the incentive approaches.

:moneybag: Income stability is important for contributors as it will influence the amount of time they need to spend thinking about how much income they are receiving against what they need, what they’re chances are of receiving future funding and whether their current situation is sustainable over the long term.

:arrow_right: Read more - Incentive approaches - Disbursement

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