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The Problem With Token Quotas

Economics
17 May 20261 min summaryFrom 20VC with Harry Stebbings
The Problem With Token Quotas
20VC with Harry Stebbings
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  • The concept of monitoring people's token consumption has an economic impact, and according to Goodhart's law, which was introduced by an LAC professor, monitoring a variable can change its causal relationship, resulting in distorted outcomes 10s.
  • When people are aware that their token production and usage are being monitored, they may alter their behavior, such as burning tokens on unnecessary tasks to meet quotas, as seen in cases involving companies like Amazon or Meta 42s.
  • The percentage of their salary that the average developer spends on tokens is an important number, but it is difficult to determine due to the tendency of employees to distort the outcome when their token usage is targeted by their employers 2m6s.
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