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NFT Term

Direct Incentive

Definition of Direct Incentive from the NFTguild.com glossary.

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An incentive is a reward for positive or productive behavior on a blockchain or smart contract. There are two main incentives for a blockchain-based smart contract: staked and direct incentives. A staked incentive refers to the rewards balance of tokens or assets custodied in a blockchains smart contract, whereas a direct incentive refers to other blockchain users who do not have tokens or assets custodied in a smart contract.