Team-based incentives are not particularly common yet, though they are growing in popularity. It's pivotal that a team has some choice in who they are teaming up with in order to align motivations and incentives to achieve. A simplistic incentive is an autonomy based award. If a team completes a project ahead of schedule then they can spend the remainder of the allotted time to work on whatever they please. Sort of make your own 20% time. You can see how hard this is to get right though because if you let the product managers set schedules then they'll make the deadlines too short. If only the engineering team sets the schedule and is incentivized to come under schedule then they'll consistently over-estimate. Requires trust and balance between the team and the stakeholders.

All that said, when you talk to really high-performing teams many of them will say that they value just continuing to get to work with that same set of individuals. It's a reward onto itself to get to work with people whom you really enjoy working with.