The incentive tree - a geometric reward mechanism
The more I look into Bitconnect the more I realize what the genius is about the platform. The genius of Bitconnect is it's marketing. This led me to look at what motivates people and why referral marketing is the most effective and the result was the discovery of a paper discussing that very topic in a way applicable to the crypto space.
- Incentive trees are an algorithm which act as a mechanism to determine how much rewards a participant receives based on their contribution to the network.
Incentive trees have been studied for use in crowd sourcing, or human computation, but no one has thought to think about the impact of incentive trees on the crypto space. The incentive tree algorithm may in fact be the secret sauce to improve the marketing of any crypto project.
Academic literature classifies the incentive tree algorithm as a "geometric reward mechanism". The interesting thing is this can also be simulated on computers, and machine intelligence can be involved to iteratively improve the effectiveness of these algorithms over time. This topic falls into the field of "computational social science".
References
Lv, Y., & Moscibroda, T. (2013). Fair and Resilient Incentive Tree Mechanisms.