The Web3 industry enters the era of block space surplus, rethinking the incentive mechanism

With the development of blockchain technology, the Web3 industry has entered a new stage of block space oversupply. The previous strategy of solely focusing on the supply side is no longer applicable; the industry needs to rethink how to effectively incentivize all participants.

Recently, the funding programs of some well-known blockchain projects have become the focus of controversy, being seen as a breeding ground for corruption and useless applications. With the changes in the global political and economic landscape, the crypto industry is also maturing rapidly and is about to welcome true large-scale applications. In this context, the industry's focus is shifting from technology and developers to end users and consumers.

Projects and developers who can recognize this shift early will gain a competitive edge in the new era of large-scale Web3 applications. It is noteworthy that certain ecosystems have been at the forefront of innovation, continuously introducing new concepts and solutions.

Recently, an emerging project proposed an innovative incentive plan aimed at rebalancing and aligning the interests of various participants in the ecosystem. The core of this plan is to encourage all parties to responsibly participate in the network's consensus security and governance while making reasonable use of Block space resources.

The program is designed by drawing on successful token economic models in the industry, integrating the essence of multiple cycles of experience. It changes the traditional token economics model of proof of stake chains, rewarding not only governance nodes but also directly rewarding application chains and end users.

It is particularly worth mentioning that the plan has designed a unique token unlocking mechanism. Users need to remain continuously active and make reasonable use of block space resources in order to fully unlock their rewards. Additionally, users can also choose to stake their rewards in the liquidity pool of the main chain to enhance the overall liquidity, interoperability, and security of the ecosystem.

This innovative incentive mechanism design aims to make its native token the dominant currency in the ecosystem while also trying to find a balance of interests and responsibilities among governance nodes, application chains, and end users. At the same time, it is committed to avoiding the common issues of fragmentation in certain ecosystems, as well as the misalignment of incentives in other ecosystems.

The emergence of this new incentive model marks that the Web3 industry is entering a more mature and user-oriented stage. It reflects the industry's in-depth thinking on how to find a balance between technological innovation and user needs, which may provide new ideas for the development of future blockchain projects.