# kaal:claim:4015908-038

**Claim.** Non-linear reward structures using weighting, tiers, or logarithmic curves counteract centralization of token supply by decentralizing disproportionate returns so that rewards do not scale linearly with the amount of liquidity a user holds.

**Type.** design  **Support.** argued

**Holds when.**

- fair launch protocol designing its reward structure

**Source quote.**

> Fair launch protocols can create some form of weighting, tier, and/or logarithmic curves for rewards. This decentralizes disproportionate returns, so they do not scale linearly with the amount user liquidity a user has.

**From.** Wulf A. Kaal, *Fair Token Launch* (2022), IV.5 Counteract Centralization of Token Supply, page 19

**Cite as.** Wulf A. Kaal, Fair Token Launch (2022). SSRN: https://ssrn.com/abstract=4015908

**Verify.** sha256 of source PDF `e0925afde0c42a16cd5310983789fae3eb3d1f121e2954a72afa64191d00fe37` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202022%20-%20Fair%20Token%20Launch.pdf

**Topics.** risk-and-incentives, decentralization, tokenomics

**Keywords.** rewards, non-linear-incentives, centralization, token-supply, protocol-design

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