This week we talked to Daniel from Thrive Coin about the challenges of rewarding contributors in large communities in a scalable way.

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How can Thrive Coin help us get to a world with real equity?

Decentralized Autonomous Organizations (DAOs) are promising a future where anyone can contribute and be rewarded proportionate to the value they create. However, the reality of DAOs today falls short of this ideal. According to Daniel, the founder of Thrive Coin, only 1% of value-creating contributions are actually rewarded in DAOs. This gap between the promise and reality of DAOs is due to the challenges of auto-validating contributions and auto-rewarding contributors.

Auto-validating contributions is a necessary step in rewarding contributors proportionate to the value they create. However, auto-validating contributions at scale is a complex task that requires significant automation. Thrive Coin addresses this challenge by building a protocol that supports communities in auto-validating any theoretically, millions of ways in which community members contribute. It achieves this through the community's advisory board, which selects the contributions to be rewarded and how they are validated. The advisory board also constantly evolves to refine and add contributions, as well as shift reward amounts based on the community's needs.

Auto-rewarding contributors is another challenge that DAOs face. Auto-rewarding contributors with stuff they value, such as native tokens or digital assets, is essential to incentivize contributors to continue creating value. Thrive Coin solves this challenge by auto-rewarding community members with their native token or another digital asset that community members value. Additionally, Thrive Coin rewards contributors intrinsically through thank-you notes for every contribution they make, recorded on-chain through their own version of "Ether Scan".

Parallel to the challenges of auto-validating and auto-rewarding contributions, the challenge of incentivizing contributors with extrinsic and intrinsic motivators must be addressed. Thrive Coin recognizes the importance of both extrinsic and intrinsic motivators and rewards contributors with both. The native token serves as an extrinsic motivator, whereas the thank-you notes serve as an intrinsic motivator.

However, the challenges of rewarding and incentivizing DAO members go beyond just auto-validating and auto-rewarding contributions. One of the biggest challenges that DAOs face is maintaining the incentives and rewards over time. This is especially true for DAOs with a large number of members. Thrive Coin addresses this challenge by constantly evolving and refining the rewards and incentives offered to community members. The advisory board is responsible for making these adjustments, based on the community's needs and feedback.

Another challenge is the lack of transparency in DAOs. Transparency is essential for building trust and accountability within DAOs. Thrive Coin addresses this challenge by recording all contributions and rewards on-chain, creating a transparent and auditable record of all activities within the DAO. This transparency also enables community members to see the impact of their contributions on the DAO and the wider community.

In conclusion, rewarding and incentivizing DAO members is a complex task that requires significant automation and the recognition of both extrinsic and intrinsic motivators. If you want to learn more about Thrive Coin's protocol and how it addresses these challenges, listen to this Episode now.