User Activity Economy

Definition ∞ A user activity economy is an economic model within a digital platform or application where the value generated is directly tied to the active participation and contributions of its users. In Web3 contexts, this often means users earn rewards, governance rights, or ownership of assets based on their engagement, content creation, or network contributions. This system aims to align incentives between the platform and its user base, promoting sustained interaction and growth. It decentralizes value creation and distribution.
Context ∞ The concept of a user activity economy is central to many play-to-earn games, decentralized social media platforms, and other Web3 applications. News frequently reports on new models and the success or challenges of existing ones. The sustainability and fairness of these economies are ongoing topics of debate and development.