In an ecosystem with a growing number of rollups, aligning the incentives of all
participants is crucial. Although there have been attempts to achieve this, most
encounter a few common core problems:
Misalignment of incentives for dApps that generate high levels of on-chain
activity and value
Economic underutilization of the native token
Inefficient distribution of protocol-level grants and incentives to foster
long-term value and alignment
Initia aims to address these issues for Interwoven Rollups through a novel
incentive alignment mechanism known as the Vested Interest Program (VIP). This
is done by programmatically rewarding valuable economic activities:
Rollup receive reward allocations for creating innovative apps and new use
cases for the INIT token
Users earn INIT tokens from performing beneficial actions or meeting criteria
set by the L2s.
Finally, by allocating a portion of the overall rewards directly to the rollups,
the VIP program ensures that the rollup teams, its users, and INIT holders are
long-term aligned with the success of the ecosystem.
