Ethereum co-founder Vitalik Buterin has spoken out about user engagement strategies in crypto projects. He urged the industry to focus on creating useful applications rather than trying to buy user attention.
My first reaction to this was:
— vitalik.eth (@VitalikButerin) February 12, 2026
"And that's why I just got my $2,725 check of fileverse tokens now that fileverse has grown to the point where my dad regularly writes docs in fileverse that he sends to me"
My second reaction to this was:
"I see how this makes total sense from a… https://t.co/fnly2iCGi5
According to Buterin, financial incentives are justified only as compensation for inconveniences during the early stages when a protocol is still "raw." Once a project matures, the need for subsidies should diminish.
The developer warned against attracting users who come solely for rewards. Such an audience does not provide long-term value and leaves the platform as soon as the payouts end.
Good and Bad Examples
As an example of acceptable incentives, Buterin cited rewards for providing liquidity in DeFi. These payouts compensate early investors for the heightened risks of hacks and bugs typical of new projects.
He labeled payments for social media activity as the worst-case scenario. This approach attracts individuals looking to game the system with minimal effort, creating the illusion of a large audience while harming community quality.
Buterin also noted the "cynical nature" of the market from 2021 to 2024. He believes that during this period, the "real product" often became the token itself and the speculation surrounding it, while incentive programs merely supported this bubble.
Recall that Buterin discussed the potential process of merging Ethereum with artificial intelligence.