Merit based describes a system or process where rewards, access, or opportunities are determined by individual achievement, contribution, or qualification. In digital asset ecosystems, this principle might apply to governance participation, staking rewards, or access to exclusive features, where active and valuable contributions are recognized. It stands in contrast to systems based solely on capital holdings or random chance, aiming to incentivize constructive engagement and expertise. Implementing merit-based structures seeks to foster a more productive and skilled community within decentralized networks.
Context
Discussions about merit-based systems are common in the context of decentralized autonomous organization governance, developer grants, and community incentive programs. News reports might analyze how different protocols implement meritocratic principles to reward active contributors or enhance decision-making quality. The ongoing challenge involves objectively measuring and rewarding merit in a transparent and tamper-proof manner within decentralized environments.
This shift from FCFS to a proof-of-engagement mechanism fundamentally re-architects the token distribution funnel, prioritizing network loyalty over bot speed.
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