Hi, we’re Grabber. And our mission is to create incentivization without the risk for the community.
The crypto market is giddy, opportunistic and inertial. To survive and flourish, crypto projects have to keep their user-base tight, motivated and <well-fed>. Or, in other words, they have to incentivize them to keep them at bay.
But there is a dark side to the incentivisation effort. Having very limited filtering/recruiting tools at their disposal, projects often end up with a very vague image of their communities. There’s no telling if a certain account in a queue for another airdrop is interested in the utility of the project or is just out for a quick buck.
Say, you as a developer give out N tokens for <incentivization> of your users. After the initial sale, their price of the token goes up x10. But you don’t have a clear picture of who you’re distributing your tokens to. 50% of your tokens end up in the hands of low motivated community members, who aren’t interested in the usability of your product, so they go out and sell your tokens as soon as they see the price going up. It creates a chain reaction of subsequent token dumps, and pressure to sell increases among the community members overall. Now, to save the token from the looming price avalanche, you as the project founder have to buy back at least 5 times (5*50%) as much tokens as you initially gave out. Otherwise even the loyal community might fall under pressure and cut their losses to flee the sinking ship.
And these were even some generous numbers in our example. The percentage of users who will flip your tokens in the current model are usually much higher than 50%.
This situation results in projects giving away big chunks of their marketing budget with little to no result. And more often than not, a significant portion of tokens are flipped and dumped, putting the entire survival of the project on the market at risk. Meanwhile, startups can’t afford to just flush away their <incentivization> budgets to their own demise, especially in the midst of the current crypto winter.
But the users are not to blame here, it’s the distribution mechanism and current oversaturation of demand that have to be addressed. Existing tools provide developers with little to no insight on their audience, which is crucially important for community building. Developers, at best, are able to see social media accounts / current balances of their users, which is not substantial enough to make informative decisions on their subsequent behavior. Moreover, in this stage of popularity for IDOs, <bounty-hunting> opportunists have figured out ways to abuse the already weak filtration and collect the spoils.
Grabber’s mission is to give projects a clear picture of their user-base, and let developers pick and decide who will help them go to the Moon. We use complex scoring models to make sure the projects reach their desired audience and build healthy communities by setting clear parameters based on their previous on-chain activity. Grabber is the tool to make incentivization cheaper, aim it at the right audience and make it work. We will help your project keep your tokens out of flippers’ hands.
Grabber uses a combination of two powerful tools:
Our distribution model is a technical know-how for the industry, not yet represented on the market. It implies automatic token distribution based on the scoring (rating) of users’ on-chain activity.
Approaching token distribution, our client projects highlight relevant experiences that the user should have. For example, a Gaming project might be looking for users with experience in NFT gaming like Axie Online, an NFT platform will likely prioritize users with experience in selling NFTs, and a Web3 social media project will probably look for users with >1 year of continuous online activity.
This allows projects to distribute their incentivization-aimed tokens among users who have proven to know how to utilize them, and not just flush it down the market. And the sooner the token will be effectively utilized, the better it is for community building.
The distribution of tokens is automated. Allocations are distributed to users who fit the criteria, set by the project founders.
Grabber creates a specialized page for the project, where users can register, connect their wallets and claim their allocations, while we conduct scoring based on their on-chain activity. Grabber then checks the motivation of the relevant users’ claims: registered users must confirm their participation at an appointed time to receive their tokens. Otherwise, their tokens are burned.
In some cases, it makes sense to unlock and distribute all of the incentivization aimed tokens at once. For example, if the volume of incentivization-aimed tokens is low, or if the volume of tokens on the market and in trading is already high.
However, in other cases, the prospect of instantaneous token wholesale/unlocking can pose a risk of market shock. In these situations it is advised to use vesting – gradual unlock of tokens binded to certain events.
The current market standard for blockchain projects is unconditional vesting. This type of vesting consists of gradual scheduled unlocking of tokens without any attached conditions for users. Gradual distribution made it possible to ease and redistribute market pressure in a number of cases. However, it barely reduces the overall volume of it.
We suggest a model, already tried and tested by large companies:
With each unlocking period, the user’s <level> increases, so is the availability of the funds for that user. However, withdrawals can only be made once. Maximum amount of token available for the withdrawal amount is tied to the user’s <level>. However, withdrawal decreases the chances of said user to reach the next <level> and expand their withdrawal maximum.
This allows projects to:
Vesting can be organized in a way, which will unlock tokens on the percentage basis, with final <levels> unlocking more percentage increase than the early ones.
Events based progressive vesting
Another modification to the progressive vesting model which Grabber proposes is the introduction of an event-based progressive system for users.
Advancing to the next <level> by users can be tied to a specific action. For example, the first 10% of tokens from the allocation can be claimed by the user immediately, while the second 25% – on the condition of them staking their tokens. This consolidates the result of experience-based distribution of Grabber with <subsequent-behavior>-based distribution.
The interface of event based progressive vesting is implemented as simply as possible: the administrator uploads a new conditioned <level> to the public database, and users fitting the set criteria automatically correspond with it.
The distribution of allocations is no longer an obligation of the project, but an opportunity for users to prove themselves beneficial to the community and the project. In other words, it’s a <win-win> situation for both parties.
Grabber’s smart contract is currently in its final rounds of testing on the Astar network. This is a completely new solution, not yet represented on the market, and we are very excited about the prospects for all projects on Astar.
We would be happy if you could perform a basic audit of our smart contract: together we could introduce the best distribution tool for the whole Astar family. Your engineers can check our smart contracts for vulnerabilities and any questions to our technical team.