gm friends 👋,
Welcome to the last part of our Private Beta introduction to Talent Protocol. We’ll wrap it up with an introduction to rewards and how they work:
- What are rewards?
- Why do we need rewards on Talent Protocol?
- Where do they come from?
- How do rewards work?
What are rewards on Talent Protocol?
Network rewards are an incentive designed to reward users who actively participate in Talent Protocol. Both talent and their supporters earn rewards based on their activity on the platform. Season 1 does not have a defined reward structure yet and is used as testing ground for reward schemes in future seasons. Rewards will always be paid in TAL.
Why do we need rewards on Talent Protocol?
During the bootstrapping phase of Talent Protocol, talent and supporters on the platform are sparse, making it difficult for network effects to kick in. The lack of native network utility is compensated by financial incentives to participate. As the network and its value grows, financial incentives decrease and are replaced by network utility. This mechanic can be observed in the adoption of many DApps in the decentralized finance space.
Where do Rewards come from?
50% of the total $TAL supply is allocated to community rewards. This pool of tokens is intended to help launch, grow, and scale Talent Protocol. 80% of that pool (400M TAL) will be distributed as platform rewards to the community over a period of 40 years (following an inverted quadratic downtrend function). 10% are reserved for Talent Rewards, which will be specifically targeted towards talent on the platform.
How do rewards work in Season 1?
Part of the responsibility of being an early believer in the protocol will be to test and give feedback to different reward structures designed by the core team. These reward structures are still under development and will be, if proven successful, a permanent feature from Season 2 onwards.
That concludes the four-part series to the Talent Protocol Private Beta. Join our talent and supporter waitlist for Season 2 and become a part of the community on our Discord server.