Key Takeaways:
- Discuss what initial points offerings entail in the Web3 space as projects look for better and fairer ways to engage with people.
- Look at the indirect role of points in crypto fundraising and community-building campaigns.
- See whether or not such points can be a viable option for Web3 projects to let them go forward in the competitive landscape.
The Web3 space has become one of the busiest in the global digital economy, largely powered by new-age users who want to explore novel experiences and alternative modes of investment. Businesses aiming to provide such experiences typically require ample engagement and community presence, which they have been achieving through airdropping tokens. Now, though, things have started evolving a little, leading to a shift toward initial points offerings that intend to overcome challenges encountered by airdrop campaigns while keeping people hooked to the project for reasonably longer periods of time. This blog discusses the latest mode of rewarding people in the Web3 space.
Initial Points Offerings: An Overview
An initial points offering (unpopularly abbreviated IPO) is a rewarding mechanism that taps into conventional means of offering points-based offerings to users of a Web3 business application. The mechanism has become famous in the last few months, largely fuelled by the dangers and hassles projects faced through airdropping crypto tokens.
- So far, several projects across the decentralized economy have employed this method successfully, reaping considerable benefits in terms of profits, online presence, and community engagement. Such outcomes clearly convey the importance of points-based crowdfunding systems in the Web3 space, especially when the world transitions from Web2 to Web3.
- Several Web3 market research experts believe that initial public offerings could trigger a phase for the crypto space quite like initial coin offerings (ICOs), which changed the direction of the market back in 2017. With a crypto bull run still pending, reward points could be the pivot that the crypto space needs to step up to the next level.
- Although coupling reward points with Web3 projects sounds a bit awkward (and a bit unethical for Web3 maximalists), their role in assisting in the global transition from centralized to decentralized digital premises has proven vital. We will see how vital it is in handling several existing problems in the Web3 market as we progress further.
Issues Addressed By Initial Points Offerings
Before the advent of initial points offerings, airdropping was (and still remains) a popular mode among Web3 projects for rewarding users. However, some obvious troubles popped up with time, leading airdrops to lose their prestigious nature. Market experts and long-term enthusiasts, however, believe that points-based systems could mutually benefit businesses and users in the Web3 space.
- In recent times, especially when the crypto market was at rock bottom, a practice known as airdrop farming became prevalent among seasoned crypto traders. Under this strategy, people tend to commit their support to a Web3 project by taking minimal part in its campaigns that put their name upfront.
- Since token airdrops will be conducted randomly to random wallets, people exploited these campaigns to get tokens (sometimes those with high value) and disappear from the project’s circles. Such practices have led to the fading of several profits hyped to become big (primarily by airdrop hunters who aimed for tokens).
- Initial public offerings aim to address such concerns by providing points to people who contribute to a Web3 project by providing liquidity, meaningful engagement, and new user referrals. Whether these points will lead to special benefits, such as an airdrop, depends on individual business owners, reducing the prospect of farming airdrops.
- This system also tends to steer clear of regulatory concerns since there are predefined rules when it comes to reward points. Although token airdrops are attractive for their randomness and value proposition, some nations classify crypto tokens as securities, making it tough for Web3 projects to proceed without hurdles.
Thinking of a Way to Attract People Toward Your Visionary Web3 Project?
Opt for us. We are an experienced company providing phenomenal services when it comes to unique campaigns, such as those based on initial points offerings for various Web3 ventures.
Popular Web3 Projects Using Initial Points Offerings
Multiple Web3 projects have tapped into initial points offerings and garnered immense success. While the market has not witnessed the long-term proposition of such projects, the points-based reward system remains a viable alternative to avoid hassles surrounding airdrop campaigns for ventures that need immense technical and market knowledge.
- Blur: Blur has a points system that offers diverse rewards to users who indulge in asset listing, bidding, and lending operations.
- Friends Tech: Friends Tech offers points for users to interact with the application that could be used in the future for various use cases.
- Rainbow: Rainbow Wallet provides points for users to utilize the wallet, interact with the Ethereum blockchain, and refer others.
- Tip Coin: Tip Coin provides reward points for users for showcasing their tag ($TIP) on X (Twitter) and related interactions.
- EigenLayer: EigenLayer rewards people with points for locking staked Ether on its protocol, opening chances for restaking cryptos.
Will Initial Points Offering Be Viable In The Long Run?
While the exact impact of initial points offerings is yet to be determined, whatever we have seen tells one thing – points on Web3 could be both good and bad. While points let people engage with projects in anticipation of token airdrops or exchangeability, their centralized nature means project founders have the ultimate control, which does not sound very good.
Still, offering points can be a great means to induce engagement, elevate online presence, and strengthen liquidity, which tends to put Web3 projects in the higher levels of the market. Such effects truly light the prospects for aspiring businesses, as Web3 technology is still in the adoption phase, and more people are expected to enter in the coming years.
Conclusion
Hence, we have delved into the details of initial points offerings and how they contribute to the transition to Web3. While the method’s full-scale impact is yet to be known, signs of success have already popped up from several projects. If you are looking for an alternative way to airdrop tokens, offering point-based rewards can be a viable alternative while ensuring the same level of buzz and presence. With Blockchain App Factory’s expert team, you can easily create points representing your Web3 project in an instant. Get in touch with us now to begin a lucrative rewards system!
