Incentives for Participation

Let’s take a look at how the $CARROT ecosystem will be able to engage with consumers and contributors[82]. Incentives can also be analyzed through a breakdown of Initial and Ongoing Incentives[83] as well as Intrinsic (values, mission, goals, reputation, etc...) and Extrinsic Incentives (token distribution and revenue sharing, etc.)[84]

Consumer Incentives:

• Recycling Participation: Waste Generators, Bin Custodians, Haulers, Processors and Recyclers) receive $CARROT automatically through the $CARROT distribution model based on the performance of the recycling supply chain (understood as reaching the source of waste creation).

• Reputation: the $CARROT ecosystem has the opportunity to become the largest environmental community and most effective green tech solution to date. The reputational gains and goodwill that can be created is difficult to measure but can be substantial, at the personal and organizational levels. The world is in need of leadership and real results in the environmental space and reputation can be a powerful incentive for contributing to the $CARROT ecosystem construction. Reputation will be acquired at the Zero Waste Registry within a Corporate Leaderboard for ESG and EPR, and with the $CARROT ecosystem through the Holder Reputational System.

Contributor Incentives:

• Direct Contribution: Direct Contribution: The Carrot Fndn and Carrot DAO will distribute $CARROT to network contributors who assist in technology & business development, community building, marketing, partnerships, Zero Waste Audits, etc.

• Providing Liquidity: $CARROT tokens will be distributed as Liquidity Pool provider rewards until ecosystem fees can support a good enough return for liquidity provisioning.

• Significant Contribution: Contributors deemed to have made significant contributions to the $CARROT network can also benefit directly by being paid $CARROT Tokens from the Community Treasury or earn a share of ecosystem fees, for a time, by being included as ‘Service Provider’ in the $CARROT distribution from the sale of TRCs and TCCs. An example, can involve paying out $CARROT tokens to logistics optimization service providers who plug their technology into the network, financial institutions who provide access to $CARROT through client interfaces, or an existing waste logistics platform adopting $CARROT as its Web3 solution.

Figure 46: $CARROT Distribution Model and its Participants

82. A16z - Principles & Models of Web3 Decentralization, p.10

83. A16z - Principles & Models of Web3 Decentralization, p.16

84. A16z - Principles & Models of Web3 Decentralization, p.9