Posts

Overview of Crypto Incentives & Social Mining

avatar of @samest
25
@samest
·
·
0 views
·
4 min read

Blockchain has become a foundational technology that enabled new modes of value creation for individuals, organisations, and society. This technology opens opportunities for many knowing that its working principle is transparent and decentralized.

Blockchain is known for its token economy (Cryptocurrency) which project owners were able to use differently to increase the use of the technology and also attract many people to embrace the technology. One of the critical features commonly used is Airdrop. In case you are new to what an airdrop is, Investopedia FAQ about Airdrop will help.

While blockchain technology is still in its infancy but developing fast, many organisations have started experimenting with its potential in various industries like hospitals, constructions, financial institutions, media and communication e.t.c.

Crypto incentives are one of the keys used to increase the awareness of blockchain projects.

Types of Crypto Incentives

  • Airdrops & Giveaways: This is a distribution of free tokens with little or no task from the participants. E.g. CoinMarketCap Airdrop program, Twitter influencer giveaway program e.t.c.
  • Sharedrop: This is all about new project token distribution based on your stake or LP on Cosmos network.
  • Bounty Program: This is a distribution of tokens with little social media task completion. E.g. Bounty0x, Gitcoin, Fundrequest e.t.c
  • Cashback Program: E.g. Trading fee rebate percentage on Binance liquidity Swap.
  • Decentralized Lottery Program: Burning of token to gain access into big pool rewards E.g. MANTRA Pool
  • Staking/Liquidity Providing Program: Common to all DeFi project
  • Bug/Testnet Campaign: Rewarding for finding bug after testing a newly launched financial applications, explorer/blockchain.
  • Learn & Earn Program Completing a course, quiz, or training to earn a reward. E.g. BitDegree, Coinbase Earn, CoinMarketCap, Binance MasterClass e.t.c.
  • Referral Program: Commonly used by centralized exchanges.
  • Hackathon Program An event that brings together both technical and business expert to work on a creative project and get reward thereafter.
  • Social Mining: A social platform that rewards user based on their quality of work and reputation on the platform. Daoverse, Avalanche, Hive for everybody.

There are a lot of these incentive programs but the majority of them bring about competition and many participants go for the reward and ignore the ultimate goal of creating value for the project.

KeyNote About Crypto Incentives & Social Mining

  • Crypto incentives or social mining aim is purely promotional.
  • Airdrop/giveaway can be used as dusting scam while social mining guide against scam.
  • In an airdrop, participants are given free crypto coins or tokens by a new service.
  • All crypto incentives require a crypto wallet which is usually a Web3.0 wallet.
  • Social mining is not a bounty but rather rewards the quality of work done by the user.
  • Airdrop is not a reward so distribution is always the project's token, but social mining rewards it's user with stablecoin or project's token or both at a time.

The Unique Nature Of Social Mining

Clarifying some of the key features around Crypto Incentives participants need to be properly guided when dealing with free crypto. For Social Mining:

  • Getting a reward for the quality of work is the key. (Merit-based)
  • There are equal opportunities for accessing crypto investment/incentives
  • Wealth creation through a process of fighting inequality. Venture Capitals/Crypto Whales are strongholds on this problem.
  • Gold Mining of Talents: Project owners can easily connect with a creative individual to work for them. (Human resource aspect)
  • Knowing Your Community Better
  • Community Members with Great Skilled Exposure

Yes, a lot of projects were launched which did not stand the test of time due to a lack of funds from the team, poor marketing support, a team with scam agenda, VCs dumped the token for profit, crypto incentives and many other factors.

DAOVERSE by DaoLabs is one of the platforms with this criterion that uses her skilled community members, to create value for the project and reward every quality work/task carried out by the member.
As revealed in one of my articles DAOVERSE: earning through social mining,

DAOVERSE is the Social Mining V1 platform that incentivized any interested individual to govern and build DAO Labs' Social Mining community. This process is currently enabled by DAOVERSE's Labour Index system, meaning for every DAOVERSE user on Social Mining Platform will be rewarded with a $LABOR Token (governance token) based on individual efforts/activities. This serves as the fuel for their respective Labour Indexes.

Threats Around Social Mining

  • Illicit/plagiarise content, and other unnecessary content.

  • Scammers & Hackers as formally reported and Controlled by Daolabs

  • Reputational threats, like users trying to buy their way. E.g. Steemit social mining Whales are champ.

Having a sustainable plan for the project is highly important and this can only achieve by understanding the calibre of people you are dealing with, the ability to control your mode of operations in a fair manner, surrounding yourself with real and committed team members knowing that human management is one of the most dangerous aspects of business, your success in this area, will definitely affect the others in positive.

In addition, social mining like Daoverse can sustain their project and reach out to as many more projects and individuals via:

  • Quality Team
  • Community call and education about social mining and its advantages
  • Creation of more tasks that command engagement
  • Team attending different crypto/blockchain events to increase social mining awareness among project owners.

In conclusion, the crypto space is full of different ways of incentivising users' engagement but many failed due to tools and modes of managing the process. Take a lead way using the right tool in other to have quality results. Daoverse manages it's reputational aspect of the project manually which gives room to checks and balancing to reward accordingly.

Join DAOVERSE Today The Africa Community Reach Out To Me For Any Support

Reference Links

https://www.coindesk.com/learn/what-is-a-crypto-airdrop/

https://www.investopedia.com/terms/a/airdrop-cryptocurrency.asp

Posted Using LeoFinance Beta