The Versatility of Web3 Crowdfunding Models
A blueprint for launching and growing the startups of tomorrow
The blockchain and Web3 industry have seen significant innovation over the past decade with several trial and error phases, capturing the imagination of millions worldwide in a gold-rush amplified by the “move-fast and break things” mantra, touching many industry verticals.
Blockchain technology and the always-on market-places of tokenized assets now offer a glimpse, not only in the social, gaming or financial markets of the 21st century, but also into gamified and efficient crowdfunding models for trailblazing, disruptive businesses.
Effective gamification models span across governance, revenue sharing, treasury management, phygital experiences, exclusive/priority access, enhanced reputation & visibility, rewards and much more, thus shaping a lean, continuous feedback medium between the startup and its user base.
We’ll reference the Citadel Wallet project and its gamified NFT Pre-Sale for their hardware wallet as a Proof of Concept explorative study.
The deeply intertwined symbiosis between the physical, product-centric Citadel Hardware Wallet and the Guardians of the Citadel NFT project is an example of a merged Web2.5 business that assured exposure and appeals to the entire user spectrum. From conservative users investing into cryptocurrency for its fundamental values or for portfolio diversification, to traders, collectors and degens, all have a reason to interact with the project and learn the value of using the product.
Web3 crowdfunding is thus evolving to bridge gaps in the ecosystem, providing value and palpable utility for all user personas.
The Phygital NFT model
In contrast to more traditional crowdfunding models such as Kickstarter, the phygital NFT pre-sale drop assures versatility and peace of mind with a seamless user onboarding experience. Users remain engaged through the gamification of the web3 NFT project while maintaining in custody of the NFT placeholder of the actual physical item.
Since each NFT is backed by physical assets, it instills an actual baseline value for each NFT, similar to Bitcoin’s baseline value tethered at the cost dedicated for Bitcoin creation through mining power. This avoids potential death spirals that traditional NFT projects might experience.
There are multiple layers which can be appended on top of the phygital pre-sale model, not limited to:
- Gateways for scaling such as a mixed utility fungible token,
- Transparent government and treasury management,
- Milestone based funding emissions based on DAO voting,
- User base engagement and incentivisation through additional NFT rewards,
- NFT based IRL benefits, such as token gated access, free delivery or discount vouchers,
- Secondary market behavior can continue to shape developments of the NFT project, demand and community predilection while gauging interest in the product.
The utility of a crypto hardware wallet can’t be understated, yet, market leaders such as Ledger and Trezor have been slow to integrate digital assets into their model, being less relatable to the very user-base they are addressing. Emerging projects such as Trust wallet, SafePal wallet and Citadel wallet, through the aforementioned utilities provided by their web3 footprint, should provide a long term guarantee of market share expansion due to the broadening industry reach.
Embracing Web3
With Web3 technology evolving evermore closely towards the tangible real world and a growing number of Web2 businesses finding themselves in an adapt or die-out chase, we find ourselves at regulatory-clarity away from the mainstreaming of the Web2.5 business.
When adopting blockchain technology into businesses, there are 2 prevalent ideologies:
1. Improve overlaying UI/UX to the point that the blockchain interaction is seamless ( examples include NBATopShot or leading ticketing systems ),
2. Offer parallel tracks for battle tested, familiar web2 experiences and alternatives ones for web3 natives,
3. Combine the utility & usability of web3 assets in tandem with real-world assets, experiences, services.
The businesses that will be adapting in catering for non-technical users while encouraging and offering additional perks to advanced users, will front-run the competition and emerge as true winners.
Regardless of the solution choice, the term “Phygital” will only continue to trend higher in everyday use.
On-chain digital asset distribution on public ledgers is simple and efficient:
- Enables the monitoring of user engagement and behaviour,
- Facilitates community and “good-actor” incentivization,
- Helps identifying trends and campaign efficiency,
- Offers a glimpse into the real-market value of company products & initiatives.
Traditional businesses are committing high percentage of revenue into a marketing budget which is often inefficient and difficult to quantify success-rates. Web3 technology not only:
- Offers exciting and stimulating engagement in 24/7 marketplaces,
- Provides multiple mediums for a constant brand feedback avenues.
Therefore disintermediating the brand community relationship and regaining ownership of the customer relationship, but also:
- Distributes marketing responsibility, awareness and educational efforts to the token holders,
- Enables the distribution of targeted incentives to the community for brand / community advocacy.
Comes down to value, the value provided by the brand to the users and the real-time and continuous feedback loop presented from user on-chain tendencies when interact with web3 assets and products.
The precept of code being law has persisted for decades, and the advent of pseudonymous data on public permissionless ledgers is now demonstrating the dual empowerment of users and value-creators, to the detriment of centralized data dealers.
Citadel Wallet is built to support the Hedera Hashgraph network first
Why there are multiple pathways for Hedera as a DLT ( Distributed Ledger Technology — a superset of Blockchain Technology ) to take leaps in adoption and formalize network-share across multiple emerging tech verticals for startups and enterprises alike:
- Fixed USD based transaction fees for easy budgeting of dApp OPEX,
- Sturdy and trusted governance model,
- Regulatory compliance,
- ReFi & ESG initiatives while maintaining the lowest carbon footprint in the blockchain industry.
