Usage-based rewards are incentives or payments distributed to users based on their active participation or contribution to a platform, network, or service. These rewards are typically proportional to the level or type of engagement, such as transaction volume, data provision, or content creation. They are a common mechanism in decentralized ecosystems to encourage adoption and network activity. Such reward systems aim to align user incentives with platform growth.
Context
In the cryptocurrency and decentralized finance (DeFi) sectors, usage-based rewards are a fundamental component of many protocol designs, often distributed as native tokens. News frequently reports on various yield farming strategies, liquidity mining programs, and other incentive structures that offer rewards for providing liquidity or using specific decentralized applications. The sustainability and economic models of these reward systems are often subjects of analysis and debate within the digital asset community.
The RPCfi primitive converts off-chain Remote Procedure Call costs into on-chain liquidity, forging a usage-based flywheel for capital efficiency and market stability.
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