Research Summary
The report discusses the emerging trend of onchain points in the web3 space. It highlights how various platforms are using onchain points as a marketing strategy to attract and retain users, and how these points can potentially lead to airdrops. The report also provides examples of platforms like Rainbow and MarginFi that have implemented onchain points.
Key Takeaways
The Emergence of Onchain Points
- Onchain Points as a Marketing Strategy: The report highlights the growing trend of onchain points as a marketing tool in the web3 space. Platforms are using these points to attract new users and increase liquidity. The points are earned through onchain activities and often lead to a gamified experience for users.
- Examples of Platforms Using Onchain Points: The report provides examples of platforms that have implemented onchain points. Rainbow, for instance, gives points to users based on their wallet balance, the swaps they make, and the Rainbow NFTs they own. MarginFi, a DeFi protocol on Solana, has a points leaderboard where users can track their progress.
Benefits of Onchain Points
- Transparency and User Engagement: Onchain points provide transparency and increase user engagement. Users can track their progress and understand which activities result in points. This transparency is a significant improvement over traditional airdrops, which often occur without users’ knowledge.
- Targeting the Right Audience: Onchain points allow platforms to target the right audience. For example, Rainbow gives points to users who have used MetaMask swaps in the past, as these are the users that Rainbow needs to target and reward.
- Referral Rewards: Onchain points can also be used to reward referrals. Users can earn points for referring new users and for the activities of their referrals. This strategy can help platforms gain new users.
Onchain Points and Airdrops
- Points and Potential Airdrops: The ultimate aim for users accumulating onchain points is to convert them into a substantial airdrop. However, the report cautions that points do not always lead to airdrops. For instance, Zapper introduced points as rewards for activities like token swapping and liquidity provision, but these points have never become an airdrop.
Actionable Insights
- Consider the Use of Onchain Points: Developers and marketers in the web3 space should consider the use of onchain points as a marketing strategy. These points can attract new users, increase liquidity, and provide a gamified experience.
- Understand the Potential of Onchain Points: Users should understand the potential of onchain points. While these points can potentially lead to airdrops, this is not always the case. Users should use apps that give out points because they find the app useful, not just because they are hoping for an airdrop.
- Explore Platforms Using Onchain Points: Users interested in onchain points should explore platforms that are using this strategy. Examples provided in the report include Rainbow and MarginFi.
