As ikigAI Labs XYZ, we are continually exploring innovative methods to engage and reward our platform users. While we've successfully implemented tokenized equity with our $VIBES ticker, our focus now shifts towards a loyalty rewards system. In the evolving narrative of crypto, we've witnessed trends from ICOs to DeFi, and recently NFTs. These trends have a common thread - they draw in an audience new to crypto. This is why the emerging trend of onchain points is particularly intriguing for us at ikigAI Labs XYZ.
What are Onchain Points?
Onchain points are like gamified rewards units, similar to airline miles or loyalty program points, but with a potentially infinite supply. They encourage specific user behaviors that drive growth. These systems can be constantly adjusted, allowing us to refine our approach based on user interaction and feedback. For consumer-focused apps like ours, onchain points can act as a precursor to a governance token.
Why Onchain Points?
Onchain points incentivize users to engage in value-adding activities, hoping for future benefits. They also introduce an element of fun and reward for participation, something akin to what governance tokens do for protocols. Given our goal to expand our user base, we need to design systems that are straightforward and engaging.
The New Approach with Onchain Points
The concept of points is evolving. Initially associated with SocialFi, it's now moving towards a model where founders can reap the benefits of tokenization without launching an actual token. Given the complexities involved in launching a governance token, onchain points offer a simpler, more user-friendly alternative.
The Power of Onchain Points
The key advantage of onchain points is the potential for a liquid market, where points can be exchanged for cash. This sidesteps the need for a governance structure and treasury, focusing solely on value creation and capture.
Implementing Onchain Points at ikigAI
- Bonding Curves for Pricing: We can use bonding curves to set the price of points, simplifying the process and removing the need for liquidity pools.
- Initial Investment and Value Creation: We might need to invest capital initially to kickstart the system, tying the points' value to the network's success.
- Engagement and Monetization: Our model could include fees on point transactions, creating a revenue stream while encouraging user engagement.
Challenges and Considerations
- Product-Market Fit: Points should complement, not replace, the core value of our app. They should enhance the user experience, not be the sole attraction.
- Sustainable Value System: The points system must encourage users to retain their points within the app, balancing earning and spending.
- Future Tokenization Indication: While points suggest a future token launch, our focus should be on immediate value creation and user engagement.