Efficient token distribution
Pacts Market lets users leverage local and global reputations to foster loyalty, acquisition, and retention.
Distributing tokens among product and protocol users has proven to be an effective way to bootstrap usage and liquidity. However, it often fails to indicate actual product-market fit. Predatory users (mercenary capital) and speculators may temporarily boost certain project metrics, but such growth is unsustainable and fades quickly.
Token distribution methods have continuously evolved and matured. Initially, protocols deployed growth tactics through social media and traditional marketing apps. This was followed by the launch of various crypto-native engagement apps—quest platforms—and later, points programs.
Making user engagement tradable
Incentives drive crypto. This is to be expected from the industry trying to financialize everything. However, more often than not, incentives are horribly inefficient and lead to wrong outcomes.
Pacts is an onchain incentives marketplace. In the true spirit of crypto, we are making incentivization and getting power users' attention more tradable. We believe we can achieve greater efficiency of incentivization by using an orderbook-like framework:
Projects bid for users' attention, liquidity, and time.
Users offer their onchain histories, attention, liquidity, and social reach to get more valuable offers from the products.
Rewarding real users
Current questing platforms do not differentiate between onchain power users and sybils, which means all wallet addresses from the perspective of questing platforms are equally valuable.
Proxy marketplaces for user attention value are, surprisingly, different NFT collections, as it is quite common for projects to drop incentives to wallets holding certain NFTs. This way, projects implicitly say that the value of attention of a Pudgy Penguins holder > the value of attention of a random burner wallet.
We see this as a direct validation of the idea that market deems important to distinguish between different user types to make sure incentives are spent efficiently. Pacts elaborate on this idea and allow the use of a variety of onchain pointers:
Onchain history and past onchain behaviors
NFT collections and POAPs
Onchain identity and credentials providers (e.g. Degenscore)
(Gated) community membership
SocialFi activity
Long-term conversion scoring
This way, valuable users can prove their onchain expertise, whereas projects can gauge how much incentives they will have to spend to attract their real users from their target audience.
As the crypto industry matures, more niches with distinct power user profiles appear - for example, NFT collectors and perp traders have different onchain behaviors. We are building infrastructure to facilitate effective price discovery for user attention.
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