Pyramid scheme does not require payout, Ponzi scheme does.
Discussion
I mean referrals like you get an incentive when a new user uses your link to sign up. It wouldn't have to be money, it could be more or better access to the service or money or a number of other incentives.
A Ponzi scheme is more like how shitcoins work.
Ponzi revolves around financial gain, pyramid revolves around continues inflow of new capital to sustain the system. It doesn’t matter, we are more or less on the same page here 😂🫂
The classic pyramid scheme is Avon or any other business like that.
Each step down the pyramid each person makes a small fraction from the person below them.
Customers are encouraged to become marketers and sell to their friends, family, neighbours etc. and the pyramid gets a little taller each time a customer becomes a seller