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Crafting a Winning Marketing Strategy for Your Tokenization / Web3 Project

Karolina

28 Jun 2023
Crafting a Winning Marketing Strategy for Your Tokenization / Web3 Project

As blockchain, artificial intelligence (AI), and cryptocurrencies continue to develop rapidly, tokenization and Web3 projects have been garnering substantial interest. These groundbreaking initiatives present remarkable prospects for businesses to revolutionize industries, enhance processes, and reveal previously untapped potential. Nonetheless, a meticulously crafted marketing strategy is essential for thriving in this highly competitive domain.

The goal of this article is to assist you in devising a top-notch marketing strategy tailored specifically for your tokenization/Web3 project. We will delve into the principal components that constitute a successful marketing campaign, while accounting for the distinct nature of these initiatives. By adhering to the methodologies described here, you can optimize your project's visibility, engagement, and overall triumph.

Table of Contents

Understanding the Tokenization and Web3 Landscape

Tokenization

Tokenization entails converting tangible or digital assets into distinctive tokens within a blockchain framework. These tokens may symbolize various assets such as real estate, artwork, intellectual property, or asset fractional ownership sharing. Blockchain technology application in tokenization facilitates fractional ownership support, augmented liquidity, and transparent transactions.

Discover Our Tokenization Launchpad

Web3

Web3, colloquially known as the decentralized web, signifies the internet's evolution that incorporates decentralized technologies like blockchain, smart contracts, and peer-to-peer networks. Its objective is to bestow users with authority over their data by excluding intermediaries and enabling direct peer-to-peer connections. Web3 epitomizes a fundamental transformation towards a more accessible, transparent, and user-driven internet.

Present-day Tendencies and Expansion in the Tokenization Sector:

  • Growing Acceptance - The tokenization sector has witnessed considerable expansion and adoption across various industries such as real estate, finance, supply chain management, and gaming. An increasing number of businesses are acknowledging the potential advantages of tokenization like enhanced liquidity, fractional ownership opportunities, and facile asset transfers.
  • NFTs and Digital Collectables - Non-Fungible Tokens (NFTs) have prominently risen as a major application in the tokenization arena. NFTs facilitate the possession and exchange of distinctive digital assets like art, music, virtual real estate, and collectibles. The escalating interest and high-profile sales of NFTs have drawn more attention to the tokenization industry.
  • Decentralized Finance (DeFi) - The decentralized finance (DeFi) sector's growth has also been heavily influenced by tokenization. DeFi platforms harness blockchain and tokenization to provide decentralized services like lending, borrowing, and trading. The DeFi ecosystem has seen impressive growth, drawing the attention of both institutional and individual investors.

Process - Marketing Strategy for Your Web3 Project

Marketing Strategy tokanization Web3

Targeting Audience Definition

For a successful tokenization/Web3 project marketing strategy, clear target audience definition is essential. This enables you to cater your messaging, channels, and methods to those most likely to be intrigued by and benefit from your project. Follow these main steps for defining your target audience:

Pinpointing Ideal User Personas

  • Investigation and Assessment

Conduct comprehensive research to grasp the potential users' traits, preferences, and behaviors for your tokenization/Web3 project. Take into account factors like age, gender, location, and professional history. Delve into their motivations, obstacles, and aspirations associated with tokenization and Web3 technologies.

  • Audience Segmentation:

Divide your target audience according to common attributes, requirements, and behaviors. You might have groups such as blockchain enthusiasts, investors seeking new asset classes, or companies aiming to utilize tokenization for better efficiency. Distinct marketing approaches may be needed for different segments due to unique needs and motivations.

Developing a Target Audience Profile

  • Challenges and Motivations:

Comprehend the issues, pain points, and motivations concerning tokenization and Web3 projects that your target audience encounters. This understanding enables you to adapt your messaging and positioning to align with their aspirations and necessities.

  • Preferred Communication Channels:

Identify which communication channels are preferred by your target audience. Are they actively involved in social media networks or online forums? Or do they attend industry events? Knowing their channel preferences will help you allocate resources effectively.

Establishing Transparent Objectives and Key Performance Indicators (KPIs)

For gauging the success of tokenization/Web3 project marketing initiatives, it is vital to create transparent objectives and determine key performance indicators (KPIs). By setting quantifiable targets and monitoring pertinent data, you can assess the efficacy of your marketing approach. Here are the steps for formulating objectives and KPIs:

Setting Targets in Line with Vision and Mission

  • Defining Specific Objectives:

Ascertain the precise outcomes you want from your marketing endeavors. Examples of these goals may be raising user adoption, acquiring qualified leads, augmenting brand recognition, or promoting token sales. Guarantee that your objectives are in harmony with your project's vision and mission.

  • Establish Goals as Quantifiable:

Provide a numerical value to your objectives, rendering them quantifiable. For example, rather than a vague goal like "boost user adoption," indicate a specific figure or percentage, like "enhance user adoption by 20% within six months."

  • Design Realistic Timeframes:

Formulate practical timeframes to reach your objectives. Take into account your project's timeline, industry tendencies, and resources allocated for marketing operations. Divide long-term objectives into smaller achievements for more effective tracking and evaluation.

Determining Relevant Key Performance Indicators (KPIs)

KPI is an acronym for key performance indicator. KPIs measure performance and progress toward a specific goal over time. They help keep the primary goals of a business at the forefront.
  • Metrics for User Engagement:

Gauge user interactions with marketing campaigns and materials. KPIs can comprise data such as website visits, page views, bounce rates, time spent on the site, social media engagement (likes, shares, comments), and email open and click-through rates.

  • Metrics for Conversion:

Assess user conversion across multiple marketing channels. KPIs may encompass the volume of qualified leads produced, conversion percentages at various customer journey stages, and the proportion of leads transforming into paying clients or token holders.

  • Metrics for Brand Awareness:

Measure the prominence and acknowledgement of your tokenization/Web3 project. KPIs can consist of brand mentions, media exposure, social media scope and impressions, search engine standings, and sentiment evaluations.

  • Token Metrics:

If relevant, monitor specific data concerning your project's token, like token sales figures, market capitalization, liquidity, and trading volumes on exchanges. These metrics offer insights into market receptiveness and the demand for your token.

Examples of Potential Goals and KPIs for Tokenization/Web3 Projects:

GOALKPIs
Boost User AdoptionTotal new user sign-ups, active user expansion rate, user retention percentage, growth of token holders.
Acquire Qualified LeadsLead capture volume, conversion rate from lead to customer/token holder, cost per lead acquisition.
Augment Brand RecognitionSocial media scope and engagement, website visitation rates, media citations, brand sentiment analysis.
Promote Token SalesToken sales figures, total number of token holders, average transaction amounts, trading volumes on exchanges.
Table with examples of KPIs for Tokenization / Web3 Projects:

Developing Your Distinctive Value Proposition

For the successful promotion of your tokenization/Web3 project, a powerful and captivating value proposition is crucial. It conveys the unique benefits and features that your initiative provides to prospective users. To create an exceptional value proposition, consider these steps:

Determining the Unique Selling Points (USPs) of Your Project

  • Pinpoint Key Characteristics and Benefits:

Examine your tokenization/Web3 project to pinpoint its exceptional features and advantages. Look at how it uses blockchain, AI, and cryptocurrencies for a clear edge over traditional alternatives. Focus on elements like enhanced efficiency, transparency, security, cost reduction, access, or asset ownership democratization.

  • Comprehend User Frustrations:

Recognize the difficulties or issues your target audience encounters in relation to the industry or problem your project tackles. Align your USPs with resolving these frustrations and providing solutions that resonate with the needs and goals of your audience.

Emphasizing Blockchain, AI, and Cryptocurrency Advantages

  • Focus on Transparency and Trust:

Emphasize the assurance of transparent and immutable transactions through blockchain technology, augmenting trust among users. Clarify how your project employs blockchain to maintain a safe and verifiable record of asset ownership and transactions.

  • Highlight Efficiency and Automation:

Demonstrate how your project utilizes AI and smart contracts to streamline processes, lessening manual labor and increasing operational efficiency. Accentuate the cost and time savings possible via automation.

  • Advocate for Financial Inclusion and Access:

Accentuate the possibility of achieving financial inclusion and access for traditionally underprivileged populations through cryptocurrencies and tokenization. Exhibit how your project democratizes asset ownership, enabling fractional ownership or investment opportunities previously unattainable.

Establishing a Captivating Online Presence

For your tokenization/Web3 project, it is vital to create a captivating online presence that enables you to connect with your target audience, establish credibility, raise brand awareness, and develop meaningful relationships with prospective users. Consider these strategies to cultivate an engaging online presence:

Construct a Comprehensive Website

Design a visually attractive and user-friendly website that mirrors your project's brand identity.

Convey the value proposition, primary features, and advantages clearly.

Offer educational materials, such as blog posts, tutorials, and FAQs, to inform users about tokenization and Web3 concepts.

Enhance your website's search engine optimization (SEO) to boost organic discoverability.

example no. 1: Ecoterra's website

Generate Compelling Content

Create top-notch content that educates, informs, and entertains your target audience.

Compose blog posts, whitepapers, or case studies that demonstrate thought leadership and tackle industry challenges.

Produce captivating videos, infographics, and podcasts to diversify your content offerings.

Encourage user-generated content like testimonials or success stories, enhancing trust and authenticity.

Engage on Social Media

Determine which social media platforms are most popular among your target audience.

Develop engaging posts, updates, and visual content to encourage engagement and sharing.

Interact with your audience by quickly responding to comments, messages, and mentions.

Collaborate with industry experts and influencers for increased reach and cross-promotion.

example no. 2: DeeLance on Twitter
Example no. 3: TAMADOGE on Instagram

Connect with Online Communities

Participate in relevant online communities, including forums, social media groups, or Slack channels centered around blockchain, Web3, or cryptocurrency topics.

Actively contribute to discussions, provide valuable input, and address questions related to your project's area of expertise.

Establish yourself as a trusted and knowledgeable community member while avoiding overt promotion.

Cultivate a Lively Community

Establish communication and collaboration channels, like dedicated Telegram or Discord groups.

Encourage community members to share their experiences, ask questions, and provide feedback.

Organize events such as webinars or AMAs (Ask Me Anything sessions) for direct engagement with your community.

Recognize and reward active participants to develop a sense of belonging and loyalty.

Implement Performance Marketing Strategy in Web3

Focusing on quantifiable outcomes and adopting marketing strategies based on data and analytics, performance marketing can help optimize ROI. Good marketing strategy helps achieve objectives for your tokenization/ Web3 project. Consider these approaches:

Establish Conversion Tracking

Utilize tools like Google Analytics or Facebook Pixel to track user actions on your website or landing pages.

Monitor conversions like sign-ups, token purchases, or specific actions to assess your marketing campaign's efficacy.

Execute Targeted Advertising Campaigns

Employ social media platforms like Facebook Ads or LinkedIn Ads to reach particular audience segments based on demographics, interests, or behaviors.

Experiment with different ad messaging, targeting options, and creatives to optimize campaigns and boost conversions.

Implement Search Engine Marketing (SEM)

Use paid search advertising tools like Google Ads to rank highly in search engine results for pertinent keywords.

Perform keyword research and refine your ad copy to attract qualified traffic to your website or landing pages.

Capitalize on Email Marketing

Generate an email list of potential customers and interested users through lead generation campaigns.

Segment your email list according to user engagement or interests for personalized, targeted email campaigns.

Employ email marketing to nurture leads, share project updates, and promote events or offers.

Example no. 4: Launchpad.xyz Newsletter

Examine and Analyze Performance

Regularly assess performance metrics like click-through rates, conversion rates, cost per acquisition, or return on ad spend (ROAS).

Optimize marketing campaigns using data insights, identify areas for improvement, and allocate resources efficiently.

By employing performance marketing strategies, you can enhance your marketing endeavors, increase campaign efficiency, and attain improved outcomes for your tokenization/Web3 project. In subsequent sections, we will delve into the significance of trust and credibility building

Conclusion - Marketing strategy in Web3

To succeed in the competitive realm of tokenization and Web3 projects, a well-structured marketing strategy is crucial. Gaining an understanding of the environment, identifying your target audience, establishing clear goals and KPIs, formulating a distinctive value proposition, and creating an interactive online presence help enhance visibility and achieve objectives. Utilizing performance marketing tactics and concentrating on trust-building measures further augment your project's potential. Adopt these approaches to ensure your project thrives in this evolving sector.

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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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.

Tagi

What is Berachain? 🐻 ⛓️ + Proof-of-Liquidity Explained

Karolina

18 Mar 2024
What is Berachain? 🐻 ⛓️ + Proof-of-Liquidity Explained

Enter Berachain: a high-performance, EVM-compatible blockchain that is set to redefine the landscape of decentralized applications (dApps) and blockchain services. Built on the innovative Proof-of-Liquidity consensus and leveraging the robust Polaris framework alongside the CometBFT consensus engine, Berachain is poised to offer an unprecedented blend of efficiency, security, and user-centric benefits. Let's dive into what makes it a groundbreaking development in the blockchain ecosystem.

Table of Contents

What is Berachain?

Overview

Berachain is an EVM-compatible Layer 1 (L1) blockchain that stands out through its adoption of the Proof-of-Liquidity (PoL) consensus mechanism. Designed to address the critical challenges faced by decentralized networks. It introduces a cutting-edge approach to blockchain governance and operations.

Key Features

  • High-performance Capabilities. Berachain is engineered for speed and scalability, catering to the growing demand for efficient blockchain solutions.
  • EVM Compatibility. It supports all Ethereum tooling, operations, and smart contract languages, making it a seamless transition for developers and projects from the Ethereum ecosystem.
  • Proof-of-Liquidity.This novel consensus mechanism focuses on building liquidity, decentralizing stake, and aligning the interests of validators and protocol developers.

MUST READ: Docs

EVM-Compatible vs EVM-Equivalent

EVM-Compatible

EVM compatibility means a blockchain can interact with Ethereum's ecosystem to some extent. It can interact supporting its smart contracts and tools but not replicating the entire EVM environment.

EVM-Equivalent

An EVM-equivalent blockchain, on the other hand, aims to fully replicate Ethereum's environment. It ensures complete compatibility and a smooth transition for developers and users alike.

Berachain's Position

Berachain can be considered an "EVM-equivalent-plus" blockchain. It supports all Ethereum operations, tooling, and additional functionalities that optimize for its unique Proof-of-Liquidity and abstracted use cases.

Berachain Modular First Approach

At the heart of Berachain's development philosophy is the Polaris EVM framework. It's a testament to the blockchain's commitment to modularity and flexibility. This approach allows for the easy separation of the EVM runtime layer, ensuring that Berachain can adapt and evolve without compromising on performance or security.

Proof Of Liquidity Overview

High-Level Model Objectives

  • Systemically Build Liquidity. By enhancing trading efficiency, price stability, and network growth, Berachain aims to foster a thriving ecosystem of decentralized applications.
  • Solve Stake Centralization. The PoL consensus works to distribute stake more evenly across the network, preventing monopolization and ensuring a decentralized, secure blockchain.
  • Align Protocols and Validators. Berachain encourages a symbiotic relationship between validators and the broader protocol ecosystem.

Proof-of-Liquidity vs Proof-of-Stake

Unlike traditional Proof of Stake (PoS), which often leads to stake centralization and reduced liquidity, Proof of Liquidity (PoL) introduces mechanisms to incentivize liquidity provision and ensure a fairer, more decentralized network. Berachain separates the governance token (BGT) from the chain's gas token (BERA) and incentives liquidity through BEX pools. Berachain's PoL aims to overcome the limitations of PoS, fostering a more secure and user-centric blockchain.

Berachain EVM and Modular Approach

Polaris EVM

Polaris EVM is the cornerstone of Berachain's EVM compatibility, offering developers an enhanced environment for smart contract execution that includes stateful precompiles and custom modules. This framework ensures that Berachain not only meets but exceeds the capabilities of the traditional Ethereum Virtual Machine.

CometBFT

The CometBFT consensus engine underpins Berachain's network, providing a secure and efficient mechanism for transaction verification and block production. By leveraging the principles of Byzantine fault tolerance (BFT), CometBFT ensures the integrity and resilience of the Berachain blockchain.

Conclusion

Berachain represents a significant leap forward in blockchain technology, combining the best of Ethereum's ecosystem with innovative consensus mechanisms and a modular development approach. As the blockchain landscape continues to evolve, Berachain stands out as a promising platform for developers, users, and validators alike, offering a scalable, efficient, and inclusive environment for decentralized applications and services.

Resources

For those interested in exploring further, a wealth of resources is available, including the Berachain documentation, GitHub repository, and community forums. It offers a compelling vision for the future of blockchain technology, marked by efficiency, security, and community-driven innovation.

FAQ

How is Berachain different?

  • It integrates Proof-of-Liquidity to address stake centralization and enhance liquidity, setting it apart from other blockchains.

Is Berachain EVM-compatible?

  • Yes, it supports Ethereum's tooling and smart contract languages, facilitating easy migration of dApps.

Can it handle high transaction volumes?

  • Yes, thanks to the Polaris framework and CometBFT consensus engine, it's built for scalability and high throughput.

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