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Content Marketing for Tokenization Projects: Best Practices and Tips

Karolina

30 Jun 2023
Content Marketing for Tokenization Projects: Best Practices and Tips

Tokenization, the process of turning a range of assets into digital tokens on a blockchain network, has proven to be a powerful instrument that transforms industries such as real estate, finance and supply chain management. By augmenting liquidity, facilitating fractional ownership and promoting transparency and safety, it has been a game changer. Though, the success of such tokenization projects hinges largely on effective content marketing approaches.

In this article, we will delve into the prime practices and advice for content marketing curated particularly for tokenization projects. This write-up intends to provide you with useful knowledge needed to effectively promote your tokenization project via content, regardless of whether you are blockchain-based startup exploring tokenization or a service provider in the blockchain realm.

Table of Contents

Significance of Content Marketing in Tokenization Projects

Content marketing is central to propelling and ensuring the success of tokenization projects. It serves multiple functions like educating the target audience, building reputable trust and credibility and generating leads for conversions. Let's dissect each of these roles:

Audience Education

The field of tokenization is relatively uncharted territory where several prospective investors and stakeholders may lack comprehensive understanding about it's practices and benefits. Content marketing fills this knowledge void by offering educational resources.

Audience education

Crafting informative blog posts:

To educate audiences, write recurring blogs that outline basic principles of tokenization, its benefits and practical cases in an understandable manner while avoiding technical terminology.

Creating detailed whitepapers:

Whitepapers are reliable documents offering deep insights into technicalities of tokenization. Constructing whitepapers that narrate technology aspects, token economics and legal factors can exhibit your prowess in this field along with providing valuable data to potential investors.

Making explainer video content:

Due to their engaging nature, videos are excellent succinct tools for explaining complex themes. Therefore, crafting explainer videos that visually depict the process and advantages of tokenization along with real-world instances can educate a larger audience effectively.

Trust and Credibility Enhancement

Tokenization endeavours often require investors confidence and trust in the project team which content marketing can help build and bolster through:

Success stories & case studies:

By publishing positive outcomes from prior tokenization projects through practical case studies, potential investors gain confidence. Such real-life examples demonstrate the effectiveness of tokenization acting as direct proof for your venture.

Thought Leadership Pieces:

By positioning your team as thought leaders via insightful articles you can elevate your project's status within the industry steadily. Publishing assessments, analyses or futuristic concepts helps create an image of a trustworthy authority within the industry.

Conducting Expert Interviews & Opinions Sharing:

When you conduct interviews with industry professionals sharing their views on topics relating to tokenization it lends more credibility to your content. Featuring well-known industry figures allows you to utilize their expertise and popularity towards creating a credible image.

Check out our Interviews! - with Maciej Jędrzejczyk, CEE Blockchain Leader in IBM and Muffie Fulton, Sr. Director of Pharma Solutions at Chronicled

Facilitating Lead Generation & Conversion Catalysts

Efficient content marketing approaches can help in generating leads who can be turned into active contributors or investors in your project through methods like:

Optimizing Call-to-action (CTA) :

Incorporate definitive CTAs that persuasively compel readers to execute specific actions like newsletter subscription, guide download or an update sign up within your content. CTA optimization is effective in capturing leads, pushing them further within conversion funnel.

Creating & Optimizing Landing Pages:

Create specific landing pages carrying targeted information about your project serving as conversion spots. Optimized pages with convincing writing style, visually pleasing design along with lead capture forms enhance chances of conversions greatly.

Ecoterra's website - landing page

Superior Strategies for Content Marketing in Tokenization Initiatives

Boosting the effect and efficiency of your tokenization project strategy relies on the execution of content marketing best practices. These guidelines help in building a robust foundation that captures the attention and engages your target audience. Below are some exceptional practices to keep in mind:

Analysis of the target audience

A comprehensive understanding of your target audience is fundamental before formulating your content marketing strategy. It assists you in the creation of content that aligns with your audience's needs, thereby escalating its significance and influence, by identifying their demographic data, interests, problems, and preferences through detailed research and analysis.

Formulating a content strategy

An explicit content strategy governs your marketing efforts providing uniformity across different channels. Keep these steps in mind while shaping your content strategy.

Formulating a content strategy

1. Establish definite objectives:

Decide on clear measurable targets for your marketing initiative. Are you looking at raising brand recognition, achieving more leads, educating consumers, or pushing for conversions? These specifically defined aims ensure that your content lines up with expected results.

2. Identify Key Performance Indicators (KPIs):

Integrate KPIs that match your goals which can comprise website visits, engagement metrics, conversion rates for leads, email opening rates, or social media metrics. Continuous surveillance and examination of these KPIs help in evaluating the productivity of your content marketing strategy.

3. Arrange a content calendar:

Design a scheduler for planning and orchestrating content formation and distribution which should cover topics, formats, and publishing timelines for your material. A well-managed calendar ensures regularity while also facilitating strategic planning.

Crafting quality engaging material

The quality impinges on the success of your content marketing endeavors along with its resonance with consumers. Here are some tips to create intriguingly enriching material:

1. Creation of informative articles:

Commit time and resources to thoroughly research topics ensuring accurate, timely information offering valuable insights or actionable data to consumers enhancing credibility while positioning you as a trusted resource.

2. Utilize visual aids like infographics and pictures: 

Engaging visual concepts effectively presents complex ideas while making it highly appealing enhancing readership ultimately increasing it’s sharing potential

3. Incorporate storytelling methods: 

Stories deliver substantial emotional impact capturing audiences’ attention while presenting benefits aiding them towards overcoming their challenges invoking inspirations based on real-world examples or narratives

Encourage community engagement via social media

Recognizing appropriate social media platforms maximizing presence thereby fostering relationships instigating interactions absorbing feedback answering queries inviting consumer contributions further leverages additional values while boosting overall engagement

Continually employing these superior strategies continually reassessing based on analytics lifting visibility engaging audiences effectively benefiting tokenization initiatives enhancing achievements

Read more about social media in tokenization project here

Social media platforms

Tips for Effective Content Marketing in Tokenization Projects

To take your content marketing strategy for tokenization projects to the next level, consider implementing the following tips. These tips will help you maximize the impact of your content and drive better results. 

Formulating a content strategy

Increase your reach with collaboration with insiders and thought-leaders

Joining forces with thought-leaders and insiders can notably expand both the reach and credibility of your content. Here are some strategies you can adopt:

1. Interview related pros: Converse with acclaimed pros in tokenization and blockchain space maintaining the value of your content by providing different insights and perspectives. 

2. Cobrand content creation: Encourage thought-leaders to participate in co-branding webinars, podcasts or add guest posts. Their participation can magnetize their followers expanding your reach.

3. Ask for positive reviews: Display testimonials from discussed professionals or influencers with a good impression of your tokenization project on your website, aiding increased trust and credibility.

Incorporate engaging visuals and interactive formats in your content

Introduction of interactive and visual elements helps seize your audience's attention while improving engagement rate.

1. Use visual summaries or infographics: Display complex information as easy-to-understand visuals, making it easier to communicate.

2. Develop calculators or interactive tools: Craft tools that provide estimates of potential returns or aid understanding token economics.

3. Utilize animations or video formats: Exploit the usage of videos showcasing use cases, explaining concepts or highlighting the benefits of your project.

Evaluate performance metrics for refining your strategy

It's vital to analyze data periodically for enhancing your marketing efforts continually.

1. Keep track of important metrics: Using analytics tools monitor vital metrics like website traffic, conversion rates etc.

2. Test various aspects through A/B testing: Check different variations of headlines, CTAs for identifying what resonates well with the audience.

3. Active listening to audience feedback: Pay heed to feedback through surveys or social media interactions allowing you to modify your content strategy accordingly.

Keep pace with industry evolution, provide timely updates

Aligning content with latest industry trends helps maintain relevance which entices audience attention:

1. Keep an eye on latest updates: Staying informed about trending issues enables content addressing challenges and opportunities.

2. Provide analytical insights: Furnishing audience valuable insights helps build a loyal following.

3. Focus on educating the community on newer concepts: Creating tutorials aids brand positioning as a dependable resource in acquiring knowledge about industry happenings.

Customizing content according to buyer's persona boosts engagement rates

1. Segmenting market: Categorising market based on parameters such as demography helps create specific content targeting those segments.

2. Develop targeted solutions: Formulate content focusing on personal challenges and goals.

3. Automation in marketing: Implement automated tools delivering personalised user experiences based on user behaviour.

Conclusion

The driving force behind the success of tokenization projects is undeniably content marketing. Pursuing best practices and adhering to the provided advice can lead to a robust content strategy that can not only educate your audience but also build trust and generate leads. Keys for capturing the attention of your target audience include personalization, joining forces with influencers and utilizing visual and interactive content. Staying in tune with the industry trends, analyzing performance metrics, and constantly fine-tuning your content marketing techniques can fuel the progress and acceptance of your tokenization project. This approach consequently attracts investors and stakeholders, thus marking a substantial influence on the blockchain industry.

Nextrope Tokenization Launchpad Platform

Nextrope Launchpad Platform is a White Label solution in a Software-as-a-Service model that helps you launch your project within a month and fundraise with Initial Coin Offering (ICO) or Security Token Offering (STO).

Our platform allows you to participate in the broad financial market of digital assets. Expand your reach and find investors globally. Tokenize your project and start raising capital within a month!

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Applying Game Theory in Token Design

Kajetan Olas

16 Apr 2024
Applying Game Theory in Token Design

Blockchain technology allows for aligning incentives among network participants by rewarding desired behaviors with tokens.
But there is more to it than simply fostering cooperation. Game theory allows for designing incentive-machines that can't be turned-off and resemble artificial life.

Emergent Optimization

Game theory provides a robust framework for analyzing strategic interactions with mathematical models, which is particularly useful in blockchain environments where multiple stakeholders interact within a set of predefined rules. By applying this framework to token systems, developers can design systems that influence the emergent behaviors of network participants. This ensures the stability and effectiveness of the ecosystem.

Bonding Curves

Bonding curves are tool used in token design to manage the relationship between price and token supply predictably. Essentially, a bonding curve is a mathematical curve that defines the price of a token based on its supply. The more tokens that are bought, the higher the price climbs, and vice versa. This model incentivizes early adoption and can help stabilize a token’s economy over time.

For example, a bonding curve could be designed to slow down price increases after certain milestones are reached, thus preventing speculative bubbles and encouraging steadier, more organic growth.

The Case of Bitcoin

Bitcoin’s design incorporates game theory, most notably through its consensus mechanism of proof-of-work (PoW). Its reward function optimizes for security (hashrate) by optimizing for maximum electricity usage. Therefore, optimizing for its legitimate goal of being secure also inadvertently optimizes for corrupting natural environment. Another emergent outcome of PoW is the creation of mining pools, that increase centralization.

The Paperclip Maximizer and the dangers of blockchain economy

What’s the connection between AI from the story and decentralized economies? Blockchain-based incentive systems also can’t be turned off. This means that if we design an incentive system that optimizes towards a wrong objective, we might be unable to change it. Bitcoin critics argue that the PoW consensus mechanism optimizes toward destroying planet Earth.

Layer 2 Solutions

Layer 2 solutions are built on the understanding that the security provided by this core kernel of certainty can be used as an anchor. This anchor then supports additional economic mechanisms that operate off the blockchain, extending the utility of public blockchains like Ethereum. These mechanisms include state channels, sidechains, or plasma, each offering a way to conduct transactions off-chain while still being able to refer back to the anchored security of the main chain if necessary.

Conceptual Example of State Channels

State channels allow participants to perform numerous transactions off-chain, with the blockchain serving as a backstop in case of disputes or malfeasance.

Consider two players, Alice and Bob, who want to play a game of tic-tac-toe with stakes in Ethereum. The naive approach would be to interact directly with a smart contract for every move, which would be slow and costly. Instead, they can use a state channel for their game.

  1. Opening the Channel: They start by deploying a "Judge" smart contract on Ethereum, which holds the 1 ETH wager. The contract knows the rules of the game and the identities of the players.
  2. Playing the Game: Alice and Bob play the game off-chain by signing each move as transactions, which are exchanged directly between them but not broadcast to the blockchain. Each transaction includes a nonce to ensure moves are kept in order.
  3. Closing the Channel: When the game ends, the final state (i.e., the sequence of moves) is sent to the Judge contract, which pays out the wager to the winner after confirming both parties agree on the outcome.

A threat stronger than the execution

If Bob tries to cheat by submitting an old state where he was winning, Alice can challenge this during a dispute period by submitting a newer signed state. The Judge contract can verify the authenticity and order of these states due to the nonces, ensuring the integrity of the game. Thus, the mere threat of execution (submitting the state to the blockchain and having the fraud exposed) secures the off-chain interactions.

Game Theory in Practice

Understanding the application of game theory within blockchain and token ecosystems requires a structured approach to analyzing how stakeholders interact, defining possible actions they can take, and understanding the causal relationships within the system. This structured analysis helps in creating effective strategies that ensure the system operates as intended.

Stakeholder Analysis

Identifying Stakeholders

The first step in applying game theory effectively is identifying all relevant stakeholders within the ecosystem. This includes direct participants such as users, miners, and developers but also external entities like regulators, potential attackers, and partner organizations. Understanding who the stakeholders are and what their interests and capabilities are is crucial for predicting how they might interact within the system.

Stakeholders in blockchain development for systems engineering

Assessing Incentives and Capabilities

Each stakeholder has different motivations and resources at their disposal. For instance, miners are motivated by block rewards and transaction fees, while users seek fast, secure, and cheap transactions. Clearly defining these incentives helps in predicting how changes to the system’s rules and parameters might influence their behaviors.

Defining Action Space

Possible Actions

The action space encompasses all possible decisions or strategies stakeholders can employ in response to the ecosystem's dynamics. For example, a miner might choose to increase computational power, a user might decide to hold or sell tokens, and a developer might propose changes to the protocol.

Artonomus, Github

Constraints and Opportunities

Understanding the constraints (such as economic costs, technological limitations, and regulatory frameworks) and opportunities (such as new technological advancements or changes in market demand) within which these actions take place is vital. This helps in modeling potential strategies stakeholders might adopt.

Artonomus, Github

Causal Relationships Diagram

Mapping Interactions

Creating a diagram that represents the causal relationships between different actions and outcomes within the ecosystem can illuminate how complex interactions unfold. This diagram helps in identifying which variables influence others and how they do so, making it easier to predict the outcomes of certain actions.

Artonomus, Github

Analyzing Impact

By examining the causal relationships, developers and system designers can identify critical leverage points where small changes could have significant impacts. This analysis is crucial for enhancing system stability and ensuring its efficiency.

Feedback Loops

Understanding feedback loops within a blockchain ecosystem is critical as they can significantly amplify or mitigate the effects of changes within the system. These loops can reinforce or counteract trends, leading to rapid growth or decline.

Reinforcing Loops

Reinforcing loops are feedback mechanisms that amplify the effects of a trend or action. For example, increased adoption of a blockchain platform can lead to more developers creating applications on it, which in turn leads to further adoption. This positive feedback loop can drive rapid growth and success.

Death Spiral

Conversely, a death spiral is a type of reinforcing loop that leads to negative outcomes. An example might be the increasing cost of transaction fees leading to decreased usage of the blockchain, which reduces the incentive for miners to secure the network, further decreasing system performance and user adoption. Identifying potential death spirals early is crucial for maintaining the ecosystem's health.

The Death Spiral: How Terra's Algorithmic Stablecoin Came Crashing Down
the-death-spiral-how-terras-algorithmic-stablecoin-came-crashing-down/, Forbes

Conclusion

The fundamental advantage of token-based systems is being able to reward desired behavior. To capitalize on that possibility, token engineers put careful attention into optimization and designing incentives for long-term growth.

FAQ

  1. What does game theory contribute to blockchain token design?
    • Game theory optimizes blockchain ecosystems by structuring incentives that reward desired behavior.
  2. How do bonding curves apply game theory to improve token economics?
    • Bonding curves set token pricing that adjusts with supply changes, strategically incentivizing early purchases and penalizing speculation.
  3. What benefits do Layer 2 solutions provide in the context of game theory?
    • Layer 2 solutions leverage game theory, by creating systems where the threat of reporting fraudulent behavior ensures honest participation.

Tagi

Token Engineering Process

Kajetan Olas

13 Apr 2024
Token Engineering Process

Token Engineering is an emerging field that addresses the systematic design and engineering of blockchain-based tokens. It applies rigorous mathematical methods from the Complex Systems Engineering discipline to tokenomics design.

In this article, we will walk through the Token Engineering Process and break it down into three key stages. Discovery Phase, Design Phase, and Deployment Phase.

Table of Contents

Discovery Phase of Token Engineering Process

The first stage of the token engineering process is the Discovery Phase. It focuses on constructing high-level business plans, defining objectives, and identifying problems to be solved. That phase is also the time when token engineers first define key stakeholders in the project.

Defining the Problem

This may seem counterintuitive. Why would we start with the problem when designing tokenomics? Shouldn’t we start with more down-to-earth matters like token supply? The answer is No. Tokens are a medium for creating and exchanging value within a project’s ecosystem. Since crypto projects draw their value from solving problems that can’t be solved through TradFi mechanisms, their tokenomics should reflect that. 

The industry standard, developed by McKinsey & Co. and adapted to token engineering purposes by Outlier Ventures, is structuring the problem through a logic tree, following MECE.
MECE stands for Mutually Exclusive, Collectively Exhaustive. Mutually Exclusive means that problems in the tree should not overlap. Collectively Exhaustive means that the tree should cover all issues.

In practice, the “Problem” should be replaced by a whole problem statement worksheet. The same will hold for some of the boxes.
A commonly used tool for designing these kinds of diagrams is the Miro whiteboard.

Identifying Stakeholders and Value Flows in Token Engineering

This part is about identifying all relevant actors in the ecosystem and how value flows between them. To illustrate what we mean let’s consider an example of NFT marketplace. In its case, relevant actors might be sellers, buyers, NFT creators, and a marketplace owner. Possible value flow when conducting a transaction might be: buyer gets rid of his tokens, seller gets some of them, marketplace owner gets some of them as fees, and NFT creators get some of them as royalties.

Incentive Mechanisms Canvas

The last part of what we consider to be in the Discovery Phase is filling the Incentive Mechanisms Canvas. After successfully identifying value flows in the previous stage, token engineers search for frictions to desired behaviors and point out the undesired behaviors. For example, friction to activity on an NFT marketplace might be respecting royalty fees by marketplace owners since it reduces value flowing to the seller.

source: https://www.canva.com/design/DAFDTNKsIJs/8Ky9EoJJI7p98qKLIu2XNw/view#7

Design Phase of Token Engineering Process

The second stage of the Token Engineering Process is the Design Phase in which you make use of high-level descriptions from the previous step to come up with a specific design of the project. This will include everything that can be usually found in crypto whitepapers (e.g. governance mechanisms, incentive mechanisms, token supply, etc). After finishing the design, token engineers should represent the whole value flow and transactional logic on detailed visual diagrams. These diagrams will be a basis for creating mathematical models in the Deployment Phase. 

Token Engineering Artonomous Design Diagram
Artonomous design diagram, source: Artonomous GitHub

Objective Function

Every crypto project has some objective. The objective can consist of many goals, such as decentralization or token price. The objective function is a mathematical function assigning weights to different factors that influence the main objective in the order of their importance. This function will be a reference for machine learning algorithms in the next steps. They will try to find quantitative parameters (e.g. network fees) that maximize the output of this function.
Modified Metcalfe’s Law can serve as an inspiration during that step. It’s a framework for valuing crypto projects, but we believe that after adjustments it can also be used in this context.

Deployment Phase of Token Engineering Process

The Deployment Phase is final, but also the most demanding step in the process. It involves the implementation of machine learning algorithms that test our assumptions and optimize quantitative parameters. Token Engineering draws from Nassim Taleb’s concept of Antifragility and extensively uses feedback loops to make a system that gains from arising shocks.

Agent-based Modelling 

In agent-based modeling, we describe a set of behaviors and goals displayed by each agent participating in the system (this is why previous steps focused so much on describing stakeholders). Each agent is controlled by an autonomous AI and continuously optimizes his strategy. He learns from his experience and can mimic the behavior of other agents if he finds it effective (Reinforced Learning). This approach allows for mimicking real users, who adapt their strategies with time. An example adaptive agent would be a cryptocurrency trader, who changes his trading strategy in response to experiencing a loss of money.

Monte Carlo Simulations

Token Engineers use the Monte Carlo method to simulate the consequences of various possible interactions while taking into account the probability of their occurrence. By running a large number of simulations it’s possible to stress-test the project in multiple scenarios and identify emergent risks.

Testnet Deployment

If possible, it's highly beneficial for projects to extend the testing phase even further by letting real users use the network. Idea is the same as in agent-based testing - continuous optimization based on provided metrics. Furthermore, in case the project considers airdropping its tokens, giving them to early users is a great strategy. Even though part of the activity will be disingenuine and airdrop-oriented, such strategy still works better than most.

Time Duration

Token engineering process may take from as little as 2 weeks to as much as 5 months. It depends on the project category (Layer 1 protocol will require more time, than a simple DApp), and security requirements. For example, a bank issuing its digital token will have a very low risk tolerance.

Required Skills for Token Engineering

Token engineering is a multidisciplinary field and requires a great amount of specialized knowledge. Key knowledge areas are:

  • Systems Engineering
  • Machine Learning
  • Market Research
  • Capital Markets
  • Current trends in Web3
  • Blockchain Engineering
  • Statistics

Summary

The token engineering process consists of 3 steps: Discovery Phase, Design Phase, and Deployment Phase. It’s utilized mostly by established blockchain projects, and financial institutions like the International Monetary Fund. Even though it’s a very resource-consuming process, we believe it’s worth it. Projects that went through scrupulous design and testing before launch are much more likely to receive VC funding and be in the 10% of crypto projects that survive the bear market. Going through that process also has a symbolic meaning - it shows that the project is long-term oriented.

If you're looking to create a robust tokenomics model and go through institutional-grade testing please reach out to contact@nextrope.com. Our team is ready to help you with the token engineering process and ensure your project’s resilience in the long term.

FAQ

What does token engineering process look like?

  • Token engineering process is conducted in a 3-step methodical fashion. This includes Discovery Phase, Design Phase, and Deployment Phase. Each of these stages should be tailored to the specific needs of a project.

Is token engineering meant only for big projects?

  • We recommend that even small projects go through a simplified design and optimization process. This increases community's trust and makes sure that the tokenomics doesn't have any obvious flaws.

How long does the token engineering process take?

  • It depends on the project and may range from 2 weeks to 5 months.

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