Summary
After working with DappBack successfully for two months and seeing significant traction and results from their Level 1 and Level 2 rewards for users in our online presence and engagement, I am requesting additional funding to fund a more interactive “Level 3” on-chain task version of these rewards. With this third level of tasks, users could complete actions such as: “buy and stake FOX on app.shapeshift.com 2” and DappBack would then be able to reward users in FOX Tokens upon verifying the completion of those tasks.
Motivation
These added Level 3 rewards will help us to drive more users to the app and encourage user-app interaction (to gather customer data, more user experience insights, and drive revenues). Given the track record of traction vs. resources spent with our current DappBack campaign, we are looking to increase our involvement there.
As of 07/28/22 our results from this initiative with DappBack were the following:
~11.5k unique users completed our tasks 3
~7k unique users achieved Level 1 and our Level 1 NFT Badge
~1.5k unique users achieved Level 2 and our Level 2 NFT Badge 1
~80k total tasks were verified and rewarded
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Note: ‘completed’ is just users who clicked the CTA to vote on snapshot, and ‘rewarded’ is only users who actually voted.
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To get these results, we have spent roughly $2500 USD to date, costing $0.03 per completed task, $0.36 per Level 1 acquisition, $1.67 per Level 2 acquisition.
Specification
Users who complete Level 3 tasks will be eligible to receive $7 of FOX on Polygon.
Users will need to complete at least 3 of the following tasks in order to be eligible for Level 3 rewards:
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Risks
With these kinds of incentivization programs, there is always the very real (and well placed) concern of individuals gaming or taking advantage of this system. I believe that we can mitigate this risk (but not completely get rid of it) by doing the following:
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Requiring users to do at least two (2) transactions on Ethereum Mainnet with our app to claim the reward (i.e., “buy FOX and Stake in our FOXy contract”)
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Ensuring that the total value of FOX rewards per address is less than the average cost of executing 2 transactions on Ethereum mainnet
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Through making gas costs the prohibitive factor, we are hoping to reduce the temptation/ability for this reward structure to be gamed unfairly. If we are requiring more/less transactions on Ethereum Mainnet, we can adjust the reward accordingly to prevent it from being gamed.
Costs
Financial
I would like to request a budget equal to 10,000 user rewards (i.e., $70k FOX) with a goal of attracting 10k users. I would like to run a series of tests with the first test allocating 1000 rewards on DappBack’s Level 3 (i.e., $7k FOX). Upon the conclusion of this test, we will reserve the right to allocate the rest of the FOX to the same program, a different program that growth believes is ungameable, or to return it to the DAO treasury if no other comparable program seems fit.
Engineering
Listing this as a line item to indicate a “0 cost” on an engineering lift. DappBack will handle the distribution of the FOX Tokens whenever users reach Level 3 and/or 4. They just need a batch transfer of the FOX Token rewards pool we would like to start with and then some extra ETH to cover the fees for distribution. There will be no need for custom contracts or scripts to implement these rewards, and DappBack is ready to launch the on-chain tasks and start driving usage as soon as this proposal passes.
Benefits
Through this campaign with Dappback, I am confident we will be able to see substantial increases in app visits, usage, and provide a way to pilot a FOX incentivization program. We will be able to measure direct conversions from Dappback see references and can report the results of this pointing to the community upon completion. Additionally, we will be provided a similar tracking spreadsheet that will be able to be viewed by the community as this campaign progresses一this can be arranged to be posted bi-weekly (or how ever frequent we decide is appropriate).
Drawbacks
As we are still in a tumultuous market, $70k is a lot to ask from the treasury given the recent cuts.
Additional Resources:
Web Traffic analysis (week of 07/25/22)
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Link to Incubation: Increasing Dappback Funding [SCP TBD] - #6 by hpayne
https://forum.shapeshift.com/t/increasing-dappback-funding-scp-tbd/1722/7
Lind to Ideation: Increasing DappBack Funding [SCP 98]
https://forum.shapeshift.com/t/increaing-dappback-funding-scp-98/1879
Voting
'FOR' supports the allocation of $70,000 of FOX tokens to be allocated towards this project accordingly (outlined above)
'AGAINST' does not support the funding of this initiative
