Building the ultimate reward layer for Web3

May 24, 2024
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Building the ultimate reward layer for Web3

Tacit — a Biconomy DAO grant recipient in Cohort 1 — is building a no-code reward tool that enables dApps & DAOs to automate and manage multi-dimensional reward programs.

Here’s why. 

Rewards are the vehicles for Web3’s core value proposition: ownership.

From a growth perspective, they are fuel for the fire. They are candy for the brain. They attract users and entice them to stay. 

Referral programs, quests, granular token emissions, long-term profit sharing, leader boards, reputation points, governance rewards, NFT badges,… Rewards done right create positive feedback loops for growth. Rewards done wrong are a death sentence for products and communities.

So what can go wrong?

Tacit has identified three problems dApps & DAOs need to tackle when designing community rewards:

  1. Rewards are multi-dimensional
  2. Rewards are tough to set up
  3. Rewards are tough to maintain 

Problem 1: Rewards are multi-dimensional

The first problem is that powerful reward systems are much more complex than once-off money drops. While airdrops have been good tools to pump prices and attract eyeballs, they have not been good at retaining users. That era is over. Airdrops alone don’t form long-term relationships. Tacit’s most recent research shows that the reward space is multi-dimensional. The power of building sustainable relationships is based on the deliberate combination of economic, social, and cultural rewards. Therefore, those in charge of growth and retention for dApps and DAOs need tools that allow them to implement reward systems that leverage the entire reward space instead of falling back on once-off money drops.

Problem 2: Rewards are tough to set up

The second problem is the technical setup for on-chain rewards. It can be complex and time-consuming, requiring the support of engineers and often relies on tech know-how on custom smart contracts and blockchain data. For non-technical managers at dApps & DAOs this poses an insurmountable hurdle:

  • Data analytics skills are needed to analyze community behavior, like writing SQL queries on dune.com 
  • It’s error-prone to collect wallet addresses from a large number of users in the community and then execute the right transactions to the right users from a hot wallet
  • When handing out rewards from a multi-sig wallet, it’s easy to run into significant delays between positive user action and receiving the reward. It can take days to activate required signers on a DAO treasury, especially when many transactions are queued.

Marketing, growth, and community managers lack a no-code tool to bring meaning to on-chain events in their community and safely send rewards in a repeatable way to their users.

Problem 3: Rewards are tough to maintain

The third problem is maintenance. As communities mature, growth and marketing have to design new rewards and augment existing reward journeys. At this point, they face the next challenge. Tech support for marketing is often a much lower priority than building products. Developers love to create new systems but hate to maintain them. Once the system is set up, developers move on. Developers lose the context of reward systems when they move on to other projects. But marketing is campaign driven and iterative. While it certainly was hard enough for marketing to get a budget for developing a community reward, maintenance continues to be an uphill battle. What they lack is a tool that allows them to maintain reward journeys without having to use precious dev time.

Say Hi to Tacit

Tacit enables dApps & DAOs to automate and manage multi-dimensional rewards — no dev team required. With Tacit’s if-this-then-that reward builder growth & marketing teams can interact directly with blockchains and their products’ off-chain components to design long-term reward journeys including referral programs, quests, loyalty programs, leaderboards and more. The dashboard allows the team to monitor running programs, bundle payouts, and analyze outcomes.

Powering an abstracted rewards UX with the Biconomy SDK

Tacit relies on Biconomy to improve the user experience for everyone interacting with Tacit, whether it’s managing or receiving rewards. The Biconomy SDK supports Tacit in two crucial points.

First, non-crypto users can receive on-chain rewards when they sign up with their social logins.

Secondly, reward claims are free for users with gasless transactions, where dApps prepay the gas costs for their users.

Airdrops dominated the once-off reward era. Tacit is building for a future of real-time rewards, continuous user engagement, and — most importantly — collective ownership. 

Next steps for Tacit and Biconomy

Tacit is currently busy launching a reward layer for the NFT platform cent.co. Stay up to date with Tacit’s progress on Tacit’s Twitter. If you want to dive into technical setups of reward systems, reach out to running_code. If you want to explore reward journeys for your dApp or DAO reach out to 3ijan.

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