Action to Earn: Exploring Sustainable Incentives with VeBetterDAO

In our recent xSpaces session, we delved into the world of Action to Earn (A2E) models with some of the leading dApps from the VeBetterDAO ecosystem.

This eighth edition of Blocks for Good brought together innovative projects like Mugshot, Green Card, Non-Fungible Book Club, Fuego, and our beloved Oily to discuss the challenges and opportunities in incentivizing sustainable actions through blockchain technology.

The Promise of Action to Earn

Action to Earn models represent a novel approach to encouraging sustainable behaviours by offering tangible rewards for positive actions. As Vasilis from Mugshot explained, “We basically reward users for choosing sustainable cups when they have their cup of coffee in the morning or any other time of the day.” This simple yet effective concept is at the heart of many VeBetterDAO projects, each targeting different aspects of sustainability.

Balancing Incentives and Lasting Change

One of the key topics discussed was the balance between providing financial incentives and fostering genuine behavioural change. David from Non-Fungible Book Club highlighted an important perspective:

“I think over time as people perform these behaviours, maybe it is just from the to extern aspect right now. But I think over time, you end up realizing that it’s incentivizing in itself to see the change that you created.”

This insight suggests that while initial rewards may draw users in, the real value lies in the long-term impact on habits and awareness.

The Role of Community in A2E Models

A recurring theme throughout the discussion was the critical role of community in the success and growth of A2E initiatives. The speakers emphasized how engaged users become ambassadors for their projects, spreading awareness and encouraging adoption through word-of-mouth.

As one participant noted, “The role of community is central. It makes them feel like it’s their app, and it is. They can spread that message of what these apps are supposed to do, what they’re designed to do.”

Challenges in Implementation

While the potential of A2E models is clear, the participants also candidly discussed the challenges they face:

Preventing Exploitation

Green Card highlighted the ongoing struggle with fake receipts and the need for robust validation mechanisms. This underscores the importance of developing systems that can verify genuine sustainable actions while preventing abuse.

Standardizing Rewards

The diverse nature of sustainable actions across different apps makes it challenging to establish a standard reward system. As Green Card pointed out, “It’s very difficult to find a sort of standard to do that.”

Balancing Economic Sustainability

Shill from Oily emphasized the need for projects to focus on their own economic sustainability: “I think in the medium to long term it’s also important that we all become a business so that we can keep providing those same rewards to the users.”

Looking Ahead: The Evolution of A2E

As these models continue to develop, several key areas for growth emerged from the discussion:

1. Collaboration Between dApps: There’s a growing recognition of the need for cross-project collaborations to leverage shared user bases and amplify impact.
2. Integration with Enterprises: Green Card’s partnership with Molino Bruno highlights the potential for A2E models to be adopted by traditional businesses.
3. Focus on Education: Many participants stressed the importance of educating users about sustainability beyond the reward system, creating a deeper understanding of the issues at hand.
4. Community-Driven Growth: Leveraging the power of engaged communities to spread awareness and drive adoption organically.
5. Refining Incentive Structures: Continuously evolving reward systems to ensure they remain effective and sustainable in the long term.

Conclusion: A Step Towards a Sustainable Future

The Action to Earn model, as exemplified by the VeBetterDAO projects, represents an innovative approach to incentivizing sustainable behaviours. While challenges remain, the potential for these systems to create lasting change is clear. By harnessing the power of blockchain technology, community engagement, and thoughtful incentive structures, A2E models are paving the way for a more sustainable future.