Dumb-Thinking Tools

A curated collection of mental models to help you think "dumb".

Prize Loop Method

A mental model for turning challenges into engaging, goal-driven experiences through rewards and competition.

What it is

The Prize Loop is all about tapping into human motivation by creating challenges with built-in rewards—just like a game. Instead of relying on discipline, rules, or punishment, this method turns tasks into exciting, goal-driven experiences that people want to participate in.

By adding elements like progress tracking, challenges, competition, and unexpected rewards, you create an environment where people stay engaged and naturally push themselves to succeed.

How is The Prize Loop Different from Gamification?

At first glance, The Prize Loop might seem like just another name for Gamification, but they work in different ways:

Gamification uses structured mechanics like points, levels, and badges to track progress and reward participation.
The Prize Loop uses unexpected rewards, challenge, and curiosity to keep people engaged—like a game, but without needing a complex system.

Think of it this way: Gamification is like a video game’s leveling system. The Prize Loop is like a lottery—people stay engaged because of the thrill of progress and the chance for an exciting reward.

When to use it

When tackling a long-term or complex problem that feels overwhelming.
When motivation is low, and progress feels slow or frustrating.
When trying to make repetitive or tedious tasks more engaging.
When encouraging collaboration and friendly competition within a team.

How it works

Define the Objective

What’s the end goal, and how do you “win”?

Break It into Levels or Challenges

Create small, incremental goals that feel achievable.

Introduce Rewards or Progress Markers

Use points, leaderboards, or milestones to track success.

Add Constraints or Time Limits

Create urgency and excitement to push progress forward.

Incorporate Social or Competitive Elements

People are more engaged when they can share or compare progress.

Example 1

The Speed Camera Lottery in Sweden

Problem

Speeding was a common issue, and traditional fines weren’t changing driver behavior.

Prize Loop Approach

Instead of just punishing speeders, Sweden introduced a Speed Camera Lottery—where drivers who followed the speed limit were entered into a cash prize drawing, funded by the fines of those who broke the law.

Results

The program successfully reduced speeding by 22%, proving that rewards can be a more effective motivator than punishment.

Example 2

Foldit—Gamers Solving Protein Structures

Problem

Scientists struggled for years to determine the structure of a crucial enzyme related to HIV.

Prize Loop Approach

Instead of relying solely on professional researchers, scientists turned the problem into a game called Foldit. Players were challenged to fold virtual proteins into optimal structures, competing for high scores.

Results

In just three weeks, players solved a protein structure that had stumped researchers for a decade, demonstrating that gamification can tap into collective intelligence and outperform traditional research methods.

Why it works

✓ Makes difficult tasks more enjoyable and engaging.

✓ Increases motivation by providing immediate feedback and rewards

✓ Encourages long-term participation by creating a sense of progress and achievement.

Tips for applying

👉️ Turn your goal into a series of challenges rather than one big task.

👉️ Add progress tracking—even something as simple as a checklist or a streak counter.

👉️ Use rewards (small incentives, badges, public recognition) to encourage continued effort.

👉️ If working with a team, introduce leaderboards, competition, or collaboration elements.

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