The following is a skeleton incentive structure design protocols can adopt, using Starknet as an example.
A well-designed token incentive program needs to achieve two core components: staked capital and user activity.
The current DeFi Spring program achieves staked capital by requiring liquidity provision across DEXs and lending markets.
However, this does not achieve user activity because rewards are earned passively. Users simply need to deposit (occasionally rebalance if providing liquidity on DEXs) and claim their rewards. While programs like this are nec
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