99% of the users dump tokens of new crypto projects right after their initial sale. It’s almost an essential part of the crypto culture, and it has become a part of a painful, costly routine for developers.
Projects have tried the ‘Carrot and Stick’ approach to break this disappointing cycle. But right now it basically comes down to stuffing the projects’ user base with seat fillers.
Start-ups end up selling their investors projects filled with dummy-accounts, which make the platforms lose momentum pretty quickly. If you check out the TOP 1000 of the Binance trading list, you will easily find these ghost towns, once seemingly crowded, but with current tokenomics clearly showing the signs of decreasing or halted activity.
Besides that, the real users, who try to employ the projects’ functionality are left with screwed up tokenomics and low motivation. And they are really not the ones to blame. Who wants or is even able to stick around, while everybody just dumps their tokens and leaves, right?
That’s because the current distribution methods are based mostly on the subsequent behavior of users. This way any bot or opportunist can be legitimized by following the projects’ socials.
Here’s a famous example from ‘It’s always sunny’:
You get the idea…
It was not always the case. You may remember the time when crypto launchpads began to rise and were highly effective. It was THE platform to bring highly motivated users, ready to risk and adapt to the new environment, to the new projects. But over time, the market reached the point of saturation, and got filled with opportunists and the people who are out for a quick buck. Mainstream attention, the rise of the bot-farms. The resembling pattern also occurred for ICOs. In their prime, ICOs gave us Ethereum, but in their fallout era – left us with the infamous start-up graveyard of 2017. Same with IEOs, that once helped to bring Polygon to the scene but fell short as a distribution model some time after. Whether you like it or not, this is just the pattern of evolution in crypto.
This leads us to the obvious conclusion – whether we continue with a launchpad model or go the other way, the market needs a new, more effective distribution model. The next step in crypto evolution, the one adapted to the new challenges, the one which learned from the mistakes of the past and built on its foundation.
Let’s go the other way. You are an HR specialist at NASA, tasked to employ a crew for Moon colonization, the crew that will build your community from the ground.
Would you employ a bunch of complete strangers and spend a big chunk of your NASA-sized budget on them based on the fact that they liked NASA’s instagram pic and told a couple of their friends about the project? They wouldn’t even step into the shuttle! Safe to say, it wouldn’t be the case.
Instead you would most likely go and thoroughly research your candidates’ resumes and make hiring decisions based on their experience in the field. You have to find people, able to pioneer this new environment and build a community from scratch. And the best way to do this is to find out what they’ve done in their previous projects.
And that’s the approach we take here in Grabber. Distribute the tokens for users who have shown and proved their competence by their experience. Building a community is more than doable, it only takes a little bit of research and determination. Grabber solves a specific problem. It estimates the ‘quality’ users based on their previous on-chain experience and not the future incentivized activity.
While building Polkapad – a crypto launchpad, we were challenged with the task of community building for our clients. And that’s when we came across the concept, which outgrew our initial ambitions – an experience-based token distribution system, the one this industry desperately needed, especially in a context of the crypto winter and low ROI.Sharif Karmo, CEO Grabber
What’s more important, Grabber is not only a <surveillance tool> for projects, but a pretty useful platform for users too. It has evolved faucet-like functionality for keeping the users coming in: new game tokens for gamers, hot NFTs for NFT holders. We’re currently focused on B2B, but definitely have a lot coming for B2C as well!