The struggle to have one's project thrive in the competitive cryptocurrency market has been a continuous one. To be able to withstand this competition, projects work towards building products with attractive features and use cases. Doing so serves as the first step towards making their project stand out, yet it is still not sufficient if there is no audience to use the products. To be able to attract the audience to their product, projects apply several incentives to the growing community. This is aimed at retaining the existing community members and attracting new ones. It is then obvious that with the power of the community, projects can easily survive the competitive market.
Some of the community-aimed crypto incentives include but are not confined to the following;
Cryptocurrency Bounty.
Cryptocurrency Bounty is a type of community incentive that is used to reward community members for performing stipulated tasks. The tasks can be to follow the crypto project's social handles or to refer people to the community.
It can also be in the form of bug bounty, where the community members are incentivized for reporting bugs on the community products.
Airdrops
This is a marketing strategy employed by projects especially new ones to create awareness of the project. They achieve this by giving out free tokens to early community members, those who have used it are still using their products and random people who are expected to be converted to community members.
Check the image above for types of Airdrops.
Testnet Incentive
This is a type of community incentive that rewards community members for using the community product when it is still in the testing stage. Those who participate in the testing program are the ones rewarded.
Marketing / Partnership Incentive
This type of community incentive is available to selected members of the community. The reward structure rewards those of them that bring in other projects for partnership, Ask me Anything ( AMA's), etc.
Learn And Earn Campaigns
This is a type of community incentive program common with Centralized Exchanges Like Binance and Coinbase. Users are meant to learn crypto courses and thereafter rewarded for answering the quizzes.
Share And Earn Campaigns
Most SocialFi projects have adopted this method. In addition to monetizing the user's content, SocialFi communities give extra token rewards to their users who share their posts on various social media platforms.
Social Mining
This is a type of community incentive method that leverages the power of the community to offer a decentralized governance solution that incentivizes user-generated content ( tweets, articles, etc) from the community. Originating from a multi-chain community and governance ecosystem, it consists of the following areas and entities; Social Mining SaaS, DAO Labs, DAOVERSE, and Social Mining Governance
DAO Labs: This is the body that owns and controls the operation of Social Mining SaaS.
Social Mining SaaS: It is the core product of DAO Labs which is compatible with various Blockchain infrastructures such as Ethereum, BSC, Polygon, NEM, etc. It functions as a governance layer through which the outputs of the organization's network and communities are incentivized.
DAOVERSE: It is the Social Mining V1 of DAO Labs which incentivized individuals for their contributions to building DAO Labs Social Mining Community.
Social Mining Governance: This is the governance hub that will in addition to governing the Social Mining V2 development and Social Mining community-building, be responsible for minting the governance token, LABOR. The LABOR token will be distributed to DAOVERSE users based on individual efforts fuelling their respective Labour Indexes.
Key Attributes That Sets Out A Crypto Incentive Method From Other Methods
COMMUNITY INVOLVEMENT
Undoubtedly, most of these crypto incentive methods are aimed at promoting the project and getting the community interactive and fun. However, due to the nature of the program, not all participants are part of the community. For example, bounty programs meant for the community are most times overtaken by looters and bots.
Nature Of The Reward
Some of these incentive methods use community tokens to reward the participants while some make use of stablecoins. When the reward structure is not appealing to the community, the number of participants is usually low.
Structure Of The Reward
Impact Of Program On Project
COMPETITIVE ADVANTAGE OF SOCIAL MINING OVER OTHER CRYPTO INCENTIVE METHODS
Social mining and its performance-based reward system give the miner the confidence to commit extra energy to achieve the goal of the program.
Unlike other Crypto incentive methods like bounty and airdrop, the impact of Social mining activities is felt on the project where it is used.
Serves as an avenue to form networks among miners
The social mining tasks improve the miner's creative mind compared to tasks from bounty and airdrop campaign
System abuse is difficult in the social mining method due to its security system.
Threats Of Social Mining As Community Incentive Method
On The Project
i. It can attract negative reviews to the project when it is unstructured and consists more of low-quality promotions.
ii. When the community native token is used as a payment method, it can cause high volatility in the price of the community token.
As an incentive method
i. It presents an opportunity for scammers to leverage on and share fake resources on behalf of the project since anyone with the required number of followers can pose as the project miner.
ii. Since it follows the community validation process, friends can easily form groups to support each other. As much as this is part of the aim of the project, it doesn't generate ORGANIC traffic.
CONCLUSION
Social Mining is the future of community building because through social mining, the community is made to be part of the project, and they are also made familiar with the products, goals, and events in the community. This way, adoption is easy because they understand the projects. Again, projects and investors are usually on Social media platforms; it will be easier to reach the targeted audience through the activities of social miners.
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