To incentivize people, offer them something they cannot refuse: Assurance!
do what banks, insurance companies, and The Fed do: collateral
banks use deposits as collateral to cover loans; they also use other assets such as income,
real estate, receivables, even securities, they’d steal your skivvies if they could sell 'em, right?
insurance companies use collateral too : they take cash in as premiums, deduct for “risk”
depending on their line of business, whether mortality (life) morbidity (health), fire and theft, etc.
and match their surplus against Bonds - usually US federal government bonds, which is usually regarded
as the safest investment in the world = at least, every nation on earth thinks so until very recently, Panama
The Fed uses collateral too - “this note is legal tender for ALL debts, public and private” .
The Federal government, which has US, the American taxpayer, WE are its collateral !
Congress raises taxes to cover its expenses. That pesky 16th Amendment.
But this current method of exchange, the US dollar, likely is on its way out; agree?
So ~~ what can we use as “collateral” to incentivize people to lend/invest/stake crypto ?
Any “fixed” asset will do, so long as it can be exchanged / liquidated into a fungible asset.
The best collateral in the world is permanent, old fashioned, vanilla, guaranteed cash value life insurance,
because it’s Guaranteed to never go down and dividends, once paid, also are guaranteed and cannot be
reduced or removed - again, they are backed by the strength of the life insurance company.
Banks know this and buy tons of this stuff on their executives, so do successful athletes, movie stars,
wall street types, bazillionaires, etc. It’s the “never fail” assurance we want.
If I wake up dead, obviously they pay the big number, and every day I fail to die, it gets better
because every day I’m more likely to die. The event that causes the problem also solves the problem.
So that’s how to use collateral to Incentivize people to buy in.
You can buy some , or, maybe I can loan you some of mine.