Increasing Dappback Funding [SCP TBD]

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” 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

~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

~80k total tasks were verified and rewarded

Note: ‘completed’ is just users who clicked the CTA to vote on snapshot, and ‘rewarded’ is only users who actually voted.

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:

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:

  1. 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”)

  2. Ensuring that the total value of FOX rewards per address is less than the average cost of executing 2 transactions on Ethereum mainnet

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.

I am open to different amounts of funding based on community sentiment and wanted to present some options:

  1. $7k USD (min amount for the initial test, require a subsequent proposal for more)

  2. $35k USD (0.5x this proposal)

  3. $70k USD (what this proposal is based off of)

  4. $105k USD (1.5x this proposal)

  • $7k (min amount for the initial test, require a subsequent proposal for more)
  • $35k (0.5x this proposal)
  • $70k (what this proposal is based off of)
  • $105k (1.5x this proposal)

0 voters

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)

  • I am in favor of this proposal as it stands
  • I would like to see changes made to it as it stands (comment changes below plz)

0 voters

14 Likes

Thanks for all the details @hpayne! This seems like a great experiment, and I appreciate you putting thought into mitigating the risk of bad actors from gaming the system and draining the rewards. Always open to suggestions for improvement from the community, but I’m in favor if this current proposal as is, and think this is a great way to leverage FOX to drive users to the app and convert them to community members by rewarding them with FOX.

Shoutout to DappBack for doing all the dev work so all we need to do now is provide the FOX :purple_heart:

10 Likes

Only recommendations here are to provide a few more options on total spend. I am a supporter of our use of Dappback and the continued relationship that we’ve built with them as traffic has proven to be of value to-date as far as I have been able to determine w/ the limited data set we’ve accumulated.

3 Likes

Very very amazing and Iam very enthusiast

Thanks for putting this together @hpayne. I’m in full support! I think Dappback is definitely one of the best ways to attract new users and ultimately increase app usage while at the same time rewarding new users with FOX.

Also, I like that you’re planning on using 7k for the initial test to see what the outcome will be and then deciding whether to continue or not.

One quick question, how long do you think it will take to attract 10k new users?

Thank you!

2 Likes

Yee haw - thanks for dropping your thoughts here! I think it is going to be really hard to estimate the timeline to acquire 10,000 users based on no data (if we run the $7,000 test, we will then be able to get a good estimate of what that looks like). For purposes of speculative discussion, just looking at historical data–and maybe doing some light predictions based on these rewards being more targeted towards getting people to use the app–we can get a very rough estimate.

From this last month (assuming an average of 300 visits per day for 31 days) we have generated 9,300 visits from Dappback and for purposes of this thought experiment we can potentially assume that could mean maybe 10-15% of those translated to app users~930-1395 (for intents of this thought experiment we will just have to assume 10% of the people are interested enough to connect to the app (AFAIK I don’t have access to metrics/bounce rates and click through metrics that would help us measure/get this more accurate but if someone has better insight plz let me know). Of those (lets just say 1k people) connecting, I would imagine that maybe 1-3% (average CTR of a web ad) of the people interested (~1000) would actually go through with the transaction immediately (10-30 people). Maybe later some will go back or revisit, but who is to say what that bounce rate/reclaim cart looks like.

So assuming we have an audience of about 1k people per month who are at least interested enough in our app to visit our site via Dappback (and earn rewards), we can guess literally anywhere from 10 months (at a rate of 1k acquired users per month–v agressive approximation) to hit 10k total new users reached, to 333 months (at a rate of 30 acquired users per month–v conservative approximation)–I really couldnt tell you which is more right without some concrete data. The key here is retaining the users once we get them onboarded/using our app which is where the truly important step comes in as that is where real returns are made.

2 Likes

so great
I like this vote