As the industry matures, Archetype, a venture capitalist, believes that in addition to token airdrop rewards, onchain points could be a promising marketing tool. Unlike tokens, onchain points can provide more flexibility for project teams and are easier for users to understand.
This article explores the potential of onchain points as a marketing tool in the cryptocurrency industry. It discusses the benefits of gamification mechanisms and the drawbacks of using tokens as rewards. Onchain points offer more flexibility and can be easily adjusted without affecting market dynamics. They can be used for various purposes such as ownership distribution, protection against Sybil attacks, and improving DeFi market functionality.
Several experiments with onchain points have already been observed in the industry. For example, Blur introduced a point leaderboard that incentivizes users to perform specific actions. Rainbow also issued points to reward users for trading in the Rainbow wallet.
While tokens have advantages in terms of composability, they also have limitations when it comes to finding genuine users and adjusting strategies. Additionally, the high transaction costs associated with tokens often lead to rewards flowing to users who are willing to pay higher fees, which may not necessarily be the most valuable users.
On the other hand, onchain points offer more flexibility and control for project teams. They can be adjusted in real-time without impacting market dynamics or user behavior. Onchain points also provide transparency and auditability, which is important for fair distribution and community review.
Furthermore, onchain points are easier for users to understand and operate compared to tokens, which can be affected by price volatility. Onchain points can be used as a powerful marketing tool to attract and retain users, and they can be integrated into various protocols.
In conclusion, onchain points have unique applications and advantages compared to tokens. They offer flexibility, transparency, and ease of use for both project teams and users. While tokens have their benefits, onchain points could be a valuable tool for Web3 product growth.
(Note: This is a translation of a news article and does not reflect the views or opinions of the translator.)