The current incentive scheme, while not that bad (and far better than nothing), puts way too much emphasis on daily activity, and that takes a toll. The cowboy hat is great, but should consider an average over a month at least, not a daily minimum. You just can't be forced to be considered a good user only if you open this site every single day and with active contributions other than reading or sporadic comments. Not even the total days you had the hat are shown as badge of contribution activity. That caused me to be totally uninterested in the cowboy hat.
A reward scheme that crosses the line between compensating good interactions towards forcing interactions tends to draw back bad content, for sometimes you don't really have something to say but have to still otherwise you get nothing. I can't do that so I end up losing the hat chronically and my rewards dropped dramatically, yet I don't consider myself that of a mediocre contributor of this platform.
I think all of that could be corrected simply using averages over a month for all purposes, rather than only considering single day activity. Single day activity is cool to determine hot posts, but not to score and reward users.