Introduction
In crafting this proposal, I have delved into several noteworthy suggestions presented by others, recognizing the significance of practicality, execution, and innovative thinking. Innovation, while crucial, is a nuanced journey—some ideas thrive, while others fade. Distinguishing between these paths swiftly is essential for progress.
ZKFair’s unprecedented launch set new benchmarks in record time, a feat that might not have been possible without the foundations laid by prior initiatives. It’s important to acknowledge and embrace the inspirations drawn from initiatives like Blast and Manta, showcasing humility and appreciation for their contributions. ZKFair is built on innovation and it is important to keep building on it.
This proposal aims to dissect leading suggestions, evaluating their practicality and viability. We aim not only to highlight pragmatic approaches but also to brainstorm some of these innovative solutions.
Without further ado, let’s get moving.
Proposed Strategies
Most of the proposed strategies are derived from existing approaches, with some being fundamental prerequisites necessary for any project’s survival. However, to chart zkFair’s transformation into a 10 billion-dollar project, we should prioritize innovation and improvisations rather than relying on basic requisites.
Let us go through the key suggestions -
Technical Infrastructure
Can a blockchain make it if infrastructure and security is not a priority or not in place?
Expanding nodes, optimizing scalability, ensuring network efficiency, and conducting mandatory security audits are industry standards pursued by every blockchain project.
However, the question is whether these would directly propel a project to a 10 billion-dollar valuation.
While these lay the groundwork—akin to a strong foundation for a building—without which further progress is rendered futile, they may not directly propel the project’s valuation.
Yet, it’s undeniable that lacking these foundational elements would inevitably burn it to the ground.
Incentivized Marketing and Engagement
Name one project that isn’t doing it.
Marketing, Ambassadors, Community Development, and Partnerships are all part of the same game plan. It’s rare to find a project that doesn’t employ these strategies as part of its growth and visibility initiatives.
Key Initiatives & Deployments
Initiatives and deployments through perpetual exchanges, lending/borrowing protocols, staking derivatives, yield-generating products, etc. are fundamental applications of blockchain technology. While pivotal for progression, it’s crucial to acknowledge that they alone might not serve as distinct differentiators in the competitive landscape.
Continuous Airdrops
Airdrops do serve as a strong incentive for user retention but have the downside of diluting the token value. These programs need to be designed meticulously to achieve a balance that rewards users while bolstering the token value in the long term. We will discuss some of these programs in the subsequent part of this proposal.
EB’s Strategy
Striving toward a $10 billion project demands an innovative edge beyond the standard strategies. While some suggestions are foundational, they’re crucial for achieving such a figure. The focal point remains retaining users, augmenting TVL, and pioneering inventive projects.
Low Gas Fee (Usage Cost)
For an average user, the economic feasibility of using a blockchain is crucial. Ethereum’s high gas fees have relegated it to a base security layer, prompting the development of other layers atop it.
Expecting the average user to transact regularly on Ethereum Mainnet is unrealistic unless engaging in high-value activities like farming airdrops or moving substantial amounts. The necessity for a strong incentive to offset these gas fees is paramount.
For ZKFair’s advancement, user participation in standard transactions needs to be encouraged.
More Fish or More Whales
The question of attracting either larger stakeholders or catering to smaller ones is pivotal, especially in the context of reduced costs. For a blockchain, the decision on focus becomes significant: prioritize luring whales for a hefty TVL, or cater to a wider audience of smaller players.
Blockchains and protocols presently prioritize attracting whales, aiming for a substantial TVL. However, this strategy has its downsides when these larger players seek better opportunities elsewhere, impacting prospects and ecosystem stability. The solution, I believe, lies in enticing smaller stakeholders and fostering their long-term commitment.
I would lean towards a strategy of cultivating a user base of 10 million users with $1000 each over a user base of 1 million with $10,000 each. Achieving this involves keeping usage costs reasonable to facilitate broader participation.
Right Talent & Growth
It reminds me of Nike’s early journey, where Phil Knight prioritized expansion despite limited cash float. Operating within tight financial constraints, they emphasized expansive growth as their primary goal.
Similarly, in the ever-evolving blockchain space, establishing the appropriate capabilities and leveraging top talent is critical for delivering results. Timely execution is essential in a rapidly changing environment; failing to meet expectations can open the door for others to take your place. In such a dynamic landscape, incentives and timing play a crucial role.
Fund framework to support Innovation & Experimentation
Having a funding mechanism big enough to reward innovation and bold experimentation.
Developers need to feel motivated to bring in new ideas and structures, despite the time and extensive testing. The fund should be substantial enough to handle failures and keep growing while supporting ongoing innovative projects.
An effective fund structure will entice skilled individuals to join the ecosystem, fostering a culture of innovation and development. The allure of incentives significantly impacts the caliber of output, especially among builders and creators. By offering a spectrum of incentives, ranging from hackathons to grants and sponsorships, we can attract a diverse pool of talent, thereby stimulating innovative ideas and contributions.
Protocol Grants
Optimism and Arbitrum are classic examples of how they offered grants to incentivize user acquisition and retention.
Staking Rewards based on KPIs
Staking rewards could be structured to align with Key Performance Indicators where the percentage of rewards changes based on the proportion of tokens staked.
For instance, a 7% reward might be offered if 50% of tokens are staked, increasing to 8% when the stake reaches 60%, and so on. This approach encourages greater participation in staking by offering escalating rewards relative to the percentage of tokens staked.
Educational Incentive Program
Develop an Educational Incentive Program that rewards users for learning by issuing soulbound NFT certifications. This initiative could encourage individuals to delve deeper into ZKFair’s ecosystem and contribute to its development. The aim is to retain talent by offering direct incentives. An illustrative example of such a program is the Hack Quest recently launched by Scroll.
Rewarding Users
Why should users remain committed to ZKFair when there are other farms to milk?
Using the analogy of a relationship, what incentivizes users to maintain loyalty to one platform when there are numerous options for fleeting engagements?
The answer is building a long-term relationship where the rewards are compelling enough to ensure user commitment. However, the path to achieving this isn’t a singular solution; it involves a multifaceted approach that encompasses various factors.
Let me throw some ideas bouncing in my head. Eventually, it all boils down to the viability and practical implementation more than anything else. So, how do we reward users?
Create a Fly-wheel effect. But how?
Rewarding Loyalty
An incentive structure that rewards long-term loyalty and involvement. Like, Blast rewarding users for having BLUR. Similarly, rewarding ZKFair holders long term.
Bridging Subsidies
Bridging costs could be subsidised to attract more users and liquidity. The lesser the financial burn for the small users, the higher the user influx.
Incentivizing Gas
Creating a program that rewards users based on their gas expenditure could serve as a strong incentive for blockchain usage. More transactions resulting in higher gas spent would correspondingly yield greater gas incentives.
This program could incorporate a tiered structure based on transaction volume, minimum gas expenditure, or a combination of both. It’s important to emulate the successful aspects of the launch program while carefully defining the mechanics of this incentive program, ensuring it prioritizes usage and user retention.
Rewards for Usage
A great example of this is the Mantle Journey (expected to have multiple seasons) which shall reward users a significant portion of tokens through an airdrop based on the points scored. The points are directly commensurate to the no of transactions with capped reward multipliers for using specific protocols.
A flexible reward program that boosts ZKFair’s transactions while also rewarding the usage of the newer applications built on it.
Gamify ZKFair’s Usage
Implementing a gamified approach through a leaderboard point system adds an element of intrigue and engagement. Certain aspects could be transparent while others remain embedded within the enigmatic world of ZKFair. Users could earn rewards in the form of protocol usage NFTs, achievable through a set level of loyalty, activity, liquidity, volume, and more. These NFTs could promise significant future benefits, fostering a flywheel effect as users retain them in anticipation of speculated or defined rewards, such as exclusive airdrops for NFT holders within upcoming partner programs.
Open Community Participation through a point-based reward system
Devise an open community program where anyone can become a contributor and get rewarded with no strings attached.
Every task could be an open bounty for anyone to claim and get rewarded through points. The points could eventually elevate contributors to different levels of the pyramid. These could be implemented to contributors, ambassadors, etc.
The incentivization structure could again be based on KPIs to reward contributions in alignment with predefined metrics.
Attract Investment from Users than VCs
Attracting the average ZKFair user to participate as a VC in upcoming projects with predefined terms could be an exceptional approach. Users could qualify based on their ZKFair score, determined by factors such as activity, loyalty, and other engagement metrics. Investment DAOs like GCR, could serve as reference points for this initiative.
Conclusion
These strategies aim to see ZKFair propel towards becoming a $10 billion project. The overall focus, however, should be to lay the groundwork for a thriving, inclusive, and innovative ecosystem.
With that said, I wish y’all a happy 2024.
The thorough exploration showcases a bright future for the project.