At this moment onboarding protocol users, and kickstarting protocol fees, is the most important metric for growth. We see that onboarding creators and communities takes a lot of time. Both in the sales funnel and also in designing their tokenomics.
Summary: Sales Mining
The core team proposes to allocate a maximum of 150.000 $THX monthly, to what we call ‘Sales Mining’. This translates to about 50% ( 12 * 150.000 / 4.000.000 - 445.000) of the total community incentives available in 2022.
We propose the following $THX rewards for onboarding new protocol users;
8000 $THX (about $400 at current $0.05 price per token) for a user with a mainnet deployment and protocol fee paying asset pool
40.000 $THX (about $2000 at current $0.05 price per token) for a user with an mainnet deployment and protocol fee paying asset pool with more than 5.000 followers or members on any of these channels; Youtube, Twitter or Discord
Approval and Payment
First steps that allow ‘Sales Mining’ to commence in April 2022;
Discord channel to discuss Sales Mining
Form to apply a sales referral, this could be injected into our Airtable
Process how we verify if applied referrals have become active pools, and paying protocol users, bi-weekly
Monthly Sales Mining payments, right after recurring Community AMA
As for the method how the multisig makes incentives available to the core team, we suggest withdrawal 100.000 $THX that the core team can readily use, if it drops below the 100.000 do monthly replenishment
Definition of success
The first two months of ‘Sales Mining’ are considered an experiment. We aim for at least two protocol users to be onboarded using the process. Note that no $THX will be distributed if no new active protocol users are onboarded. So in terms of supply dilution without clear results the risks are low. After the initial phase the program will be iterated upon, or discontinued.
This proposal will be presented and discussed at the Community AMA of Wednesday 16/03/22 on our Discord. After that this topic will be open for two weeks here on our forum for feedback.
So if you feel to give your feedback; are the incentives too high/low, perhaps distribution should be handled differently, the goals of the program should be tweaked, you might need more sales material or wonder about the follow up onboarding process, everything is up for discussion. Let your voice be heard!
Laid out pretty well, It would definitely incentivize people to launch using THX, I guess either looking at the rewards for those tokens and I ask; ‘Is it too generous?’ token rewards may be used to kick start the LP of there own project/ be used in some fashion, perhaps creating a THX/XXX Token pool as a requirement in order to receive the reward, it adds utility perspective to receiving the reward to just being a reward/governance token, hopefully for good means
Another concern I would like to address; I think internally that if at all any possibility of this mining program THX intends on launching, being used as a way to scam/rug people too,
ie, this scenario; user A wants to set up a new token using THX, user A tweets about THX and tries receiving endorsement from THX to make project and user A look more authentic, User A draws over THX investors, User A pulls the project after receiving his THX rewards + taking THX users with it.
Or prehaps the other scenario which plays out where projects are created only to be abandoned and new ones created again to receive 8000 THX
these are the only bad things ever possibly playing out in my mind, but they are quite concerning
Anything THX can do, that takes liability out of the equation would be good in that case, even a disclaimer, I think roughly 445,000 stands out at just over 20,000 dollars doing the mathematics that isn’t all that bad in this case, but points are valid reasons to be careful in considering a mining program, because the users will mine you. Not the other way around in which provides benefit to THX
I mean what do you possibly think?
20,000 seems like a small amount. I would like to hear the users of THX’s opinion on this and rather let them decide on what they want to happen with the strategy.
For now, the people and organizations we’re onboarding don’t seem very eager to make their tokens tradable right from the launch. Reasons are various, including legal. So in my opinion making a trading pair required is too high of a requirement for this incentive program.
Mind you that people (for now) have to pay the €900 set up fee for a mainnet account to our company (check out thx.network/pricing). So doing this will be a net loss. Not likely!
To summarize, we’re looking to boost the following metrics with this program in order to get venture funding aboard by Q3 this year and also kickstart protocol fees;
I think network strength has two measures of success:
A) Amount of participants in the network
B) How well those participants are able to interact
There are some nuances to the second point, however in THX Network’s case, I think the ‘well’ is measured by the amount of social tokens moving from creator-to-fans and ultimately the end goal of % increased user engagement.
I think this proposal does well to encourage success in point A. How do we encourage point B? I love the sales mining term, so here’s a slight variation - I would suggest:
‘Engagement mining’: An allocation of THX is rewarded in alongside users interacting to claim their chosen creator’s token.
I’d keep a flat fee to incentivise the creator onboarding and add this in addition.
Yes, agree. So the risk is that even though the incentives are OK, we don’t meet the one referral per month definition of succes
The way we should mitigate this is to campaign with the sales referrals; so pin it on our socials, link to it in the main menu and post it on non-crypto native channels such as LinkedIn too! I will make sure that happens
And I will discuss ‘engagement mining’ with the team. The thing is; this will create inflation of $THX towards users that might have no or little relationship with THX Network, they are interacting with their favourite creator not (consciously) with our protocol. So this might need some additional thinking to check if it truly aligns incentives of the whole protocol.
Yeah this is a big question. For now; we have been kinda guarding the onboarding of creators and communities. Aiming high for quality over quantity. I believe the next few months will have some very interesting communities onboard that will get everyone excited and also get creator-to-fans token circulation. Nevertheless, we will have to see if this ‘guarded’ launch is the right way forward. Personally I think we can gradually open up the ecosystem more and more and let creators onboard themselves. More accessible pricing is the first step, better documentation and example cases are the next, and obviously we’re improving and adding features all the time as well
In conclusion; the topic has been discussed and overall reactions are positive. In the mean time the core team has been doing competitor and ecosystem research and see similar ideas for referral marketing at similar products. This has strengthen our opinion that this is the right way forward.
Hence we conclude that we are proceeding on this proposal! Stay tuned for the Sales Mining launch later this month. Onwards and upwards!