Mechanism Design

Engineering incentive structures to achieve desired emergent outcomes — “reverse game theory” where you design the rules rather than analyze them.

In cryptoeconomics, mechanism design creates protocols where rational actors pursuing self-interest produce beneficial collective outcomes. Examples include auction mechanisms, staking/slashing rules, and governance voting systems.

Systems Connection

Mechanism design is structural engineering for social systems. The designer cannot control individual behavior but can shape the feedback loops that govern it. A well-designed mechanism makes desirable behavior individually rational — aligning component incentives with system goals.

See Also

• Cryptoeconomics — primary application domain
• Political Economy — institutional mechanism design
• Structure — what mechanisms create