Opinion by: Ilya Tarutov, founder of Tramplin
Crypto hasn’t failed because the technology is bad. It has faltered because incentive structures pushed the industry to work against the people it was meant to serve.
Since 2017, each crypto cycle has followed the same pattern: excitement, retail inflows, a velocity trap, catastrophic drawdowns and an erosion of trust that takes months or years to restore. Cycles begin with optimism, peak in overconfidence and end in panic and despair. While market conditions, macro factors and regulation matter, outcomes are driven repeatedly by how incentives are designed.
The system nudges everyday users toward the biggest risks. Psychologically, traders equate higher desired returns with higher required risk. A small token balance earning a modest staking yield doesn’t feel like progress. The staking market surpassed $245 billion, but platforms often offer 2%–10% APY, which yields little for modest balances. Meanwhile, derivatives platforms offer high-leverage trading and processed record volumes, encouraging speculative behavior.
“Just stake” isn’t enough. Native staking is straightforward and relatively safe—rewards come from the network—but platforms around staking still promote speculation, high leverage, FOMO-driven trading and risky looping strategies. Retail investors need ways to participate without constant exposure to outsized risk or serving as exit liquidity for faster, better-informed actors.
The solution: a savings product built with capital preservation as a core design goal.
A crypto “savings layer” should follow clear, non-negotiable rules that shape user behavior positively: capital preservation, full transparency and rewards for discipline over speed and speculation. It must work equally well for a $10 balance as for $100,000. Real-world analogues exist: the UK’s Premium Bonds preserve capital while offering prize incentives; prize-linked savings in the U.S. encourage consistent saving without promising high fixed yields. These models show people will participate when they trust the design, understand how it works and know their money stays safe.
Mechanics must be simple enough to explain in one or two sentences. If users cannot plainly explain where rewards come from, the design isn’t transparent. Whether rewards come from transparent yield sources or a clearly defined chance-based model, the system must be honest about what it can and cannot deliver. Crucially, incentives must reward consistency and discipline, not speed or early entry, and they must function for very small balances.
Equally important is what the system must avoid: destructive default options. The aim should be to minimize losses, keep users net positive and encourage long-term participation. A true savings layer helps everyday users stay in the game rather than quietly push them out.
If the next cycle doesn’t introduce ways to protect everyday users, crypto will repeat the same arc of hype, promise and painful collapse. The technology itself need not change—what must change is what the technology is optimized for. Products should be built to reduce losses, not maximize turnover. The industry faces a choice: protect everyday users or keep optimizing for short-term gains. Only the former leads somewhere worth going.
Opinion by: Ilya Tarutov, founder of Tramplin.