The Incentives Lab
Manifesto · Velocity

The faster it moves,
the deeper the rot.

As the world speeds up, hidden incentives compound faster — they have to be rooted out before they metastasize. A field manual for leaders operating in a system that no longer waits.

"You can't legislate your way out of a bad incentive. You can only out-design it — fast." — Aaron Bare

The Argument

Five beats. Read them once. Then re-read the first one — that's the whole thesis.

01

Speed is the new operating condition.

Markets clear in milliseconds. Models retrain overnight. Memes mutate faster than policy. The substrate underneath every leadership decision is no longer stability — it's acceleration. If your operating system was tuned for 1995, it's currently on fire.

02

Incentives compound exponentially under speed.

A small misalignment at human pace is an annoyance. The same misalignment at machine pace is a market. What used to take a decade to rot — call it slow-cooked Enron — now ferments in a quarter. Compounding is neutral. The thing being compounded is not.

03

What was tolerable at 1x is catastrophic at 10x.

Engagement bait was a content problem. At AI scale, it's a civilizational one. Quarterly thinking was a finance quirk. At AI scale, it gets baked into the reward function of the systems writing your strategy. Speed promotes every old sin to a new category.

04

You can't out-govern bad incentives. You root them out.

Regulation is a downstream lever. By the time the policy ships, the incentive has already shipped ten cycles of behavior. The only durable move is upstream — change what the system rewards. Govern the loop, not the output.

05

The cost of waiting doubles each cycle.

Every cycle you don't root out an incentive, it metastasizes into the next layer of the stack: from product to platform, from platform to protocol, from protocol to norm. The hardest thing to root out is something that has become invisible because it became universal.

"Slow systems forgive bad incentives. Fast systems don't. That's the whole job now."

— From It's Really Not That Serious

The Velocity Accelerator · Interactive

Crank the speed. Watch the rot surface.

Drag the dial. As things speed up, hidden incentives metastasize. Defuse each one with a root-out move. Clear the board to see what a clean system looks like.

System Speed
1x
Pre-internet paceReal-time AI
Rot Meter0% active
The system is asleep. Speed it up to see what wakes.
The Root-Out Framework™

Five moves. Run the loop on a cadence. Speed doesn't sleep, so neither does the audit.

01

Surface

Make the incentive visible. Write it on the whiteboard. If you can't name it in one sentence, you don't yet see it.

In the wild

Wells Fargo's cross-sell quota lived in a sales-ops doc for years. Naming it ended a $3B fraud.

02

Trace

Follow the reward to the behavior it actually produces — not the behavior it was designed for. Behavior is the receipt.

In the wild

The Hanoi rat bounty produced rat farms. The reward was for tails, not for fewer rats.

03

Stress-test at speed

Simulate the incentive at 10x volume. If it breaks the system at scale, it's already breaking it at scale — you just haven't noticed.

In the wild

RLHF's sycophancy bias was a quirk at training scale and a worldview at deployment scale.

04

Re-anchor

Tie the reward to the outcome you actually want — not the proxy that's easy to measure. Cheap proxies create expensive behavior.

In the wild

YouTube re-anchored from raw watch-time toward 'satisfied watch-time' once the cost of attention-maxxing came due.

05

Re-audit on a clock

Speed demands cadence. Schedule the next audit before you finish the current one. Incentives drift; calendars don't.

In the wild

Boeing's MCAS reviews fell off a cadence. The plane didn't.

Now go look

Every lab is a place where speed has already done its work.

The 6 labs catalog the patterns. The Root-Out Framework is what you do with the catalog. Start where you suspect the rot is loudest.