Explore the B2I2C Model and ERC404 possibilities for Enhanced Influencer-Driven User Acquisition
Today, many crypto projects try a lot of B2C (business-to-consumer) user acquisition strategies like airdrops, points & more. Some of them succeed and some of them don’t. Those who succeed early get a shock of their life later when the majority of users leave after receiving the tokens. LooksRare and Rabby Wallet projects are a few examples of this phenomenon. The primary problem is the low density of cryptocurrency users who keep monkeying around from project to project for easy gains. This problem has one solution only and that is how to broaden the market base. Once this market base is big enough, some users will eventually stay even if some may leave the platform. That is where the question comes how to broaden this market base.
The B2I2C Model: A New Approach to User Acquisition
Here comes a better way of acquiring customers that can be called the B2I2C (Business-to-Influencer-Consumer) approach. For that, we need to understand the current nature of digital sub-networks spawned by influencers. If an influencer has a million users, using him/her intelligently can promise a small chunk of users jumping onto your product. Let us imagine a small conservative figure of 0.02% to 0.05% of user adoption. Against a million-follower base, it amounts to a number between 200 and 500. Please remember that we are assuming an intelligent targeting of influencers who suit your product category and whose follower base has a good chance of liking your product.
Leveraging ERC404 for Influencer-Driven Growth
The ERC404 token standard introduces a novel mechanism to incentivize both influencers and their followers through targeted airdrops, based on achieving predefined user adoption thresholds. Let us imagine a crypto project decides to give 40% of the token airdrop to 1000 well-chosen influencers over six months but on the condition of certain user adoption targets. For example, if the user base goes beyond 100,000, the influencer communities will get a 10% token airdrop. If it goes beyond 200,000, they will get a 20% token airdrop and if it goes beyond 400,000, the airdrop will rise to 30% and if it goes beyond 500,000, the token airdrop will rise to 40%. The condition is that the influencer will be well-selected and issued an ERC404 token.
Enhancing Engagement and Adoption Through Token Rewards
Now, the question arises as to why a follower would be impressed by the influencer and start using the product. Here comes the catch. The influencer will get 50% of the token airdrop while the other 50% will be distributed among the ERC20 token holders of the ERC404 token. There are two answers, one is the quality and utility of the product. The other is that the influencer decided to share 50% of the token airdrop with its followers.
Mechanics of Token Distribution and Value Creation
Every influencer is allotted a referral code one can share with one’s followers. Once the user joins the crypto platform via the same code, he/she gets a small fraction of the ERC20 token that is mirrored to the ERC721 token via the ERC404 standard. For each fraction distributed, the influencer also gets the 100% equivalent reward. Let us assume that 20 fractions of ERC20 make a single ERC20 token and it is equivalent to one ERC721 token. Anyone with this NFT will get 500 token airdrops. Basically, it means that a single fraction has a market value of 25 tokens yet to be launched. It means that an influencer is sharing one’s follower base with the platform and getting in return token airdrops both for himself/herself and the followers. If the entire token airdrop is reserved for only 1000 ERC404 tokens, it means that their price will keep on rising till the product remains attractive to the people. The higher the adoption figure, the higher the would-be token reward and the higher would be the value of the ERC721 token. The moment 40% airdrop limit is reached, the campaign can be stopped.
The Unique Advantage of ERC404
Could this have been done without ERC404? Yes, but with huge difficulty. The reason is that pairing of tokens is a tedious task and time lag in receiving token airdrops can mess up the platform launch. With ERC404, the liquidity factor comes into play almost instantly. Every influencer can get token airdrops the moment 20 fractions are received and mirrored to an ERC721 token. So, the token airdrop pool becomes the first-in and first-out (FIFO) pool. Both the influencer and the follower would benefit from this scheme. This would also enable the platform launch managers to keep a tab on the token airdrop as well as enable them to customize this offering for greater adoption. What we have done is a simple generic example. There is a lot of possibility of adding nuances to this model. However, one thing is certain ERC404 has a game-changing potential.
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