Definition ∞ Voter incentives are mechanisms designed to encourage participation in governance processes within decentralized networks. These incentives can take the form of token rewards, fee reductions, or other forms of compensation for token holders who actively vote on proposals. The objective is to increase engagement and ensure that decision-making bodies are representative of the network’s stakeholders. Such systems aim to combat voter apathy and foster more robust decentralized governance.
Context ∞ Voter incentives are a crucial element in the design of effective decentralized governance systems, aiming to boost participation rates. Current debates often revolve around the optimal design of these incentives to ensure they are fair, sustainable, and do not inadvertently lead to undue influence by a few large token holders. The long-term impact of various incentive models on network decentralization and governance quality is a primary focus of ongoing research.
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