Introduction:
Web3 is growing at the speed of light! There are new narratives that are introduced to the World on a daily basis, but today we put the spotlight on Capx.
A project that is changing the community structure game with a focus on Quests and incorporating an insane level of technology behind their product & platform.
The mission is simple: Capx aims to become the incentive layer of the internet empowering projects to distribute IOU tokens & build strong communities. A zk Rollup app chain, built using Polygon CDK.
Understanding the Capx IOU concept
You must be familiar with the IEO (Initial Exchange Offering), where a project launched tokens by offering their initial supply on a Centralized exchange at a fair launch price. Capx is redefining the entire concept by giving birth to the IOU (I Owe You) concept. View the entire IEO concept with a gamification angle.
All of this happens on the native Capx app, where projects can list quests for users to complete and immediately claim a predefined amount of tokens to their wallet on the Capx wallet.
Now the question arises, How does this change the game?
You see, having skin in the game brings a paradigm shift in terms of users and the utility of the platform. When community members are incentivized from the word Go!
There is a high probability of the platform users not being just visitors, but becoming residents in the long run. Exactly what Web3 communities should aim for.
To create the ultimate onboarding UX, Capx utilizes social login and smart contract wallets, allowing new members to sign up and create their unique wallet in less than 30 seconds with an email or social account.
Cracking the IOU Token Code
Behold the IOU token’s defining traits:
- On-chain Tokens: These tokens aren’t mere numbers; they’re ERC-20 tokens, earned in user wallets.
- Earned Rewards: Reserved for the doers and contributors, earned through quests performed both on and off the chain.
- Non-transferrable: Locked to a user’s wallet, preventing early trades and ensuring true commitment.
- Non-tradable: Unexchangeable, these tokens steer clear of the secondary market.
- Redeemable: Each IOU token equals one project token – a redemption journey.
- Customizable: Projects dictate supply, issuance, and distribution.
- Whitelisting dApp Smart Contracts: Unveiling a world of on-chain governance experimentation and token utility.
Source: Capx blog
Setting the Stage for Community Dynamics
Picture this: a thriving community, an array of incentives, and loyalty programs that stretch the boundaries of mere participation. This dynamic trifecta has been the holy grail for Web3 projects and organizations, ceaselessly evolving as they seek novel ways to engage users and foster community bonds.
In recent times, the stage has witnessed a cascade of ingenious incentive mechanisms, all rooted in the principles of game theory and operant conditioning.
Cryptocurrency projects have uncovered the power of token incentives – a force that forges unbreakable connections between contributors, all driven by aligned interests and a true “skin-in-the-game” mentality.
We need to understand that traditional forms of marketing do not work in the Web3 landscape.
The mindset, products, and user experience are all on different trajectory paths if you dive deep and look closely with a macro lens, multiple web3 projects have failed when approaching the web3 domain with a web2 mindset.
Token Incentives Unveiled
Token incentives, at their core, harness the potency of digital tokens, like cryptocurrencies, to spur specific behaviors or actions within decentralized systems or communities.
The beauty lies in their mechanism – a fusion of cumulative interests, skin-in-the-game incentives, and equitable distribution of ownership and power among stakeholders based on their token holdings.
This orchestration transforms token incentives into a grand stage, inviting mass participation and empowering users, supporters, and community members to have a resounding voice in decision-making processes. In the words of Nikita Khrushchev, “Incentives are what get people to work harder.“
Navigating the Challenge
Yet, for projects in their nascent stages of growth, the path to community incentivization is laden with challenges. The prime quest is to strike a harmonious balance, sparking community interest and steering the momentum toward their product’s success.
A tale of two strategies emerges the allure of NFT collections, drenched in belongingness and FOMO, and the allure of liquid rewards, enticing users with cryptocurrencies for specific tasks.
However, lurking beneath these strategies lies a pitfall – misaligned incentives that distract from the project’s vision, leading to passive engagement or a fixation on superficial rewards.
Embarking on the IOU Token Journey
Enter the IOU token, a beacon of promise for projects on the brink of token launch. IOU tokens, as preliminary tokens, honor the unwavering dedication of community members by acknowledging their contributions, time, and energy invested in the project’s growth.
A symbol of gratitude, these tokens hold a key – the potential to be exchanged for the actual token post-launch.
If you are worried about the token claiming process and some huge amount of gas fees associated with the same, worry not.
Capx introduces a cutting-edge Biconomy paymaster, streamlining not just the claiming process but also enabling seamless gasless transactions for the app’s extensive user base. This innovative feature ensures effortless access to rewards for all users, regardless of their numbers, making the experience smoother than ever before.
Embracing “Skin in the Game” Incentives
A concept known as “skin in the game” emerges, intertwining an individual’s personal stake with the outcome of decisions or activities. This fusion binds actions with consequences, nurturing a deep commitment to the community’s welfare.
The alignment of interests paves the way for accountability, transparency, and a culture of shared responsibility.
IOU Tokens vs. Liquid Rewards
The age-old debate unfolds: IOU tokens versus liquid rewards. While liquid rewards might yield swift results, they falter in fostering long-term loyalty.
IOU tokens, in contrast, bear the promise of unrealized value, kindling anticipation and dedication within the community. Their worth soars in tandem with the community’s success, forging an unbreakable bond between individuals and the project.
The Symphony of IOU Tokens
As the curtain falls on this part of our journey, IOU tokens stand as a beacon of transformative potential. Shaping a new era of incentive dynamics, they light the path toward shared commitment, community alignment, and a future where rewards resonate with purpose.
The game of Capx:
- ~ 60k total active wallets
- 100k transactions
- 200k IOU tokens distributed
- Leading the AA (account abstraction) market share on Polygon
- One of the Top 5 projects from CoinList Seed 2022
- Mentioned by Biconomy as one of their top clients w.r.t AA market share
- No. 1 smart contract on Dune Analytics
CapX USPs & incoming fire in terms of UX:
Conclusion:
While the landscape within the Web3 realm keeps shifting with every tick on the clock. Users & projects alike have to be aligned with their goals & incentives.
While the end-user is the target for a platform, but in the blockchain race, users are left behind due to a number of roadblocks. While we take a look at Capx, they are bringing communities of all chains on a single platform together with a laser-focused goal.
This is the intersection where the next wave of retail users will be hopping on the Web3 ship.
Community, Quests, or Product: Capx is a win for the users & the web3 space. Bullish with every on-chain interaction.