What sets the Abundance Protocol apart is an incentive structure that aligns the interests of all participants in the ecosystem; it drives contributors to maximize their impact (as well as openly collaborate with others) and incentivizes validators to objectively and accurately review contributors’ impact. All other participants also have an interest in the accuracy of reviews (since it affects the value of the currency) and will act to challenge any fraud in the system.
Participants in the ecosystem and non-participants alike benefit from the production of public goods that the protocol enables. Yet, compensating contributors does not come at the expense of participants, since the protocol is designed to maintain the value of the currency — thus we solve the problem of the free-rider problem in public goods.
Let us now consider the major implications — and challenges — stemming from the design of the Abundance Protocol: