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Incentive Design

    Incentivization by design is an approach to designing systems, programs, or policies that incorporates incentives into the structure of the system to encourage desired behaviors. With Bitcoin, for example, miners are incentivized to validate transactions and add them to the blockchain. This incentive is a reward (in Bitcoin) for each block mined. The reward halves every 210,000 blocks, or roughly every four years, creating a strong incentive for miners to continue participation in the system as the rewards decrease over time.