Crypto struggles due to flawed incentive structures, pushing retail users into unnecessary risks. Since 2017, each market cycle has seen excitement, inflows, then collapse, eroding trust.
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Incentives designed to favor speculation and leverage lead to catastrophic drawdowns. A solution lies in creating a savings product centered on capital preservation. The UK's Premium Bonds example shows how such programs can attract large numbers of participants while ensuring safety.
For crypto, this means designing systems that reward consistency and discipline, protecting small balances too. If the industry fails to rewrite its incentive models, it risks repeating past failures.
Crypto must prioritize user protection over short-term gains to foster sustainable growth.