The difference though is that the code should take care of the user incentives to stay engaged. This method relies on self reporting and then moderators to notice to then distribute rewards... if any!

No way that's a good system. That's why 3 years ago when SMTs were announced they presented a very unique possibility for any community to give the "social rewards" a go without really needing to learn and understand Blockchain.

Algorithms are KING.

Relying on humans to manage a system like rewards always leads to favouritism, gaming and even the very opposite of what you're trying to achieve, since the many that miss out or see it as a chore rather than an enjoyable experience simply leave.

As a moderator and system administrator you then don't have that data live to realize if the system is working. Just look at the community stats right now. Subscribers celebrated but then actual participation is a fraction of that. Yet no tools available to understand why and also how you could target the silent majority.

It relies on a post.. then that post needs to be seen, then understood, then participation to take place, then moderation to determine who's worthy.. etc. By the end you're actually killing engagement because as I said the experience resembles work.. with the MAYBE that you will get rewards. This is why rewards are now seen by so many as a failed element of this blogging game.

I agree with that but again... simply because the code is so basic. The code should be able to automatically factor in participation, user reach, onboarding, comments etc. I personally would even reward private chat (if it existed here) because that way you maintain the silent majority on the platform and their attention is kept on THIS PLATFORM to then stay active in all else like voting on content, onboarding users, getting involved in communities by posting and sustaining growth.

Again though it must be CODE that recognises that activity not one human running some initiative. That's just not at all presenting Blockchain as superior. It's like going back to old world village society ... that's just not going to entice masses.

Simple as that.