Incubator Incentive Schemes

TotalCrypto proposes that incentive schemes are required to:

  • Provide a mechanism for participating crypto projects to reclaim coins deployed in the case study area. Without a mechanism for the retrieval of coins, the case study initiative will run into scaling problems in the future due to most cryptocurrencies having a capped supply.
  • Give incubees a stake in incubator equipment to act as an incentive to look after equipment and prevent theft.
  • Incubator contributors need to be incentivised to participate in the incubator initiative and support incubees.
  • Incubees should be rewarded for creating successful businesses.

The recommended solutions to these incentive problems are:

The creation of an incubator company with direct and indirect shareholdings generating incentives for participating crypto projects, incubees and incubator contributors (see Appendix 3 for more details). The incubator is unlikely to be generating revenue for at least six month. This means that an additional incentive is required for incubator contributors when incubee companies are pre-revenue. (see Appendix 4 for the recommended promotion and mechanics).

Next Section - Incubator Selection Process

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