How does incentive pay work?

Hello there, I'm curious to know more about how incentive pay works. Can you explain the basic principles behind it? For example, how is it structured, who decides on the incentives, and what factors are considered when determining the amount of incentive pay? Also, how does it differ from traditional salary or wage-based compensation systems? I'm eager to understand how it can motivate employees and drive performance in the cryptocurrency and finance industry. Thank you!