There are many reasons why rewards systems are a big deal in Web3, especially for DAOs. Here are a few of the greatest hits:
Participate to have a voice in DAO Governance
By allowing people to earn $RUG through their actions, rather than simply purchasing Rug Genesis NFTs to get the daily $RUG accrual, we can allow a whole new category of participants and energy into our governance system.
Balancing the Dominance of Wealth by Rewarding Active Members with Influence
In this way, the most active and supportive participants can be rewarded with greater influence in the governance of the project. The dominance of wealth in the space has been a consistent weakness within DAO governance, and innovations are needed to create a more balance model that makes influence more accessible.
We do this by rewarding participation with influence.
Rewarding People Who Deserve It
The engine that drives the value of Web3 projects is people’s attention, and without it, no project can survive. So it is only right, on both an ethical and practical level, to drive that value back to the people who generate it. It’s also fair because it’s proportionate to the level of energy, time, and attention they give.
Decentralized Business Development
Rewards systems can be the foundation of a future where decentralized businesses are built in community by DAOs. In order for that to work, people need to be rewarded in proportion to the value they generate, and this system creates the foundation for that.
Value can be created in a decentralized way and it can be distributed in a decentralized way. This can have BIG implications for the future.
Decentralized, Peer-to-Peer Marketing
While paying for influencers is a great strategy, the NFT market is seriously hampered by not having many alternative ways to market and promote projects organically and authentically.
It doesn’t make sense to ask community members to do it for free, and there really is no other way, as paid advertising also doesn’t work in Web3. We can move away from relying on paying influencers and move toward rewarding the community for spreading the word and bringing people into the project.
This also creates a model for authentic, organic, and fair marketing that any project can follow.
More Ways to Reward Partners and Members
An important part of the Rewards System is the Store.
The Store is where people can redeem their $RUG for prizes from our partners, which is one more way it’s rewarding to be a Rug Radio member.
We can showcase our partner projects’ mints and NFTs, sell the art of community-curated artists, and provide access to exclusive deals with Web3 app developers. There is really no limit on how this can grow, in collaboration with our community.
Ready to learn more and get involved? Read about our Rewards System!