How and why idexo is planning to release a play-to-earn token
Idexo has over the past few months had a lot of experience and successes with rapidly growing an engaged community through its various NFT mints (Early Adopter, Polygon Community and Community Competition). Based on its own successes, it has created the Community Development Kit and our first customer bloXmove had a very successful NFT community launch using it.
Based on these successes and also some hard-won lessons from these initiatives, we have decided to create a Play-to-Earn (P2E) token called KRED and in this post we will detail why, including the background of what we learned along the way and how we came to this decision, and how we plan to go about defining and ultimately releasing it. We observed that the challenges of supporting and growing a community are a lot like a game and thus found that a P2E token was relevant to these activities. We’ll explain why.
1. What we learned from Early Adopter NFT and how it relates to the P2E KRED decision
Our first NFT campaign was for our Early Adopter NFT meant to recognize the early people supporting our community and give them access to a community-only private sale round. It was also an opportunity to showcase the power of our platform in its ability to put blockchain features where you couldn’t before. Since our SDK/API enables transactions with just an API key rather than needing a blockchain wallet, it allows us to put it places where an API key can go that a blockchain wallet can’t. Thus we created the first ever way to mint an NFT inside Telegram using just a bot command.
When we did this we thought 200 people might be interested and were aiming for 50% growth, i.e. to grow our Telegram group from 400 to 600. Instead it grew from 400 to over 5,400 in just 2 days!
The Early Adopter NFT was a definite success. The Idexonaut Community responded well to an NFT that records your status as Early Adopter and active participant in the community. People responded well to badges for things such as attending an AMA or participating in a big community event. Idea of getting access to things such as the community private sale and later on special areas in a user conference also very well received.
While overall it was a great success, a problem was at the start in that many people minted without any idea or interest in the community and so those mints were wasted, blocking others. This was/is a recurring problem – how to cast a wide net and yet have a filter on it, leaving room for those interested.
It was also our first NFT and there is a lot of things we have learned since that we’d like to incorporate into an Early Adopter / Active Community Pro type of NFT. We already have the Mirror NFT for our stakers and that’s our most advanced NFT. We’d like then to add a replacement for the Early Adopter NFT that was available to anyone in the community that is an active supporter of idexo and wants to be recognized for their efforts in supporting and promoting the project.
Given the above, we realized we need a way to gate the first act of minting. There should be an in-between step to qualify user interest. One way to do that would be to make the minting of some initial KRED wide open. Then a user would have to complete some additional step(s) to earn enough extra KRED to mint a new Idexonaut Community NFT.
2. What we learned from the Polygon Community NFT and how it relates to KRED
With the Idexo Polygon Community NFT we introduced the innovation of minting on Twitter using just a tweet. We had mints on both Telegram and Twitter and without telling anyone we embedded a points multiplier based on token id ranges that was later used for the Community Competition. In our mind at the time, we were thinking that the community could collect a bunch of NFTs over time to show off in their collection in future community conferences etc. and that each would have a special power.
The novelty of the Twitter mint innovation worked well, as well as the introduction to a new chain. The community seemed to be confused with why the need for another NFT.
Given the above, we learned that introducing new challenges on new chains that are tied to an ongoing program (and for which an NFT can be a part or not) is probably better than simply launching a community collectible for each chain.
3. What we learned from the Community Competition and how it relates to KRED
The Idexo Community Competition NFT was another mint that really surprised us. Since points were to be earned for referring people to the community, there seemed to be a disincentive to referring people before the competition had started. We thought most mints would happen through the referrals therefore and not at the start. We thought maybe 1,000 or so would happen during the initial mint.
Once again we were way off in our estimations. Almost 40,000 NFTs were minted in the initial mint and our Telegram group grew from 7,000 to over 29,000 in two days. While that was great growth on the face of it, it came at a big expense. The cost to mint all of those NFTs cost us 1,600 AVAX, at the time worth about $16,000. The value of those transactions in October 2021 now stands are over $100,000.
The mint was costly at $16,000 though worth it if that many people were participating in our competition. That’s not what happened however. Instead of getting 1,000’s of people participating, it was less than 100. Whereas the Early Adopter NFT attracted many people who were genuinely interested in the community, the competition attracted people who just wanted to get free stuff at any cost, with little to no interest in the community. Months later people are still asking what they are, proving that somehow a wide group minted who had no idea what they were doing.
Leaving aside the negative lessons of some of the competition, there were some bright spots. Some people did participate and found innovative ways to promote the community. If we think about it, these type of competition challenges are something that are always relevant, should be a way to reward them ongoing and year round rather than a special event for those things. KRED gives the possibility of instant rewards for those things and then KRED can be used to trade up for things in special events (e.g. games, competitions etc.).
4. How planning for our first NFT Community Game relates to KRED
As previously announced, we have been working on a community NFT word game and were preparing for an initial mint element, whereby players could get their initial letters for free and then trade to build words that earn prizes and second-level letters that can be combined for even better prizes. Among other things, this will be a good demo of our NFT marketplace, that can be used for trading the letters.
One immediate problem is the minting of those initial letters. How do we prevent another situation where 1,000’s of letters could fall into the hands of people who have no interest in actually using them, thereby stunting the game’s progress? Another issue, is how do we make it possible for players to earn a token that could be used to pay for letters (if they didn’t want to pay in the chain native token).
KRED neatly solves for both of these issues. On the one hand we can enable people to mint KRED instead and nevertheless require that they need more than they can mint (i.e. they will need to take some additional steps to prove they are actually interested in it) in order to earn their first letter. Furthermore it provides them a way to earn an in-game currency to buy more letters.
5. What we learned from our first CDK customer and how it relates to KRED
BloXmove chose to use no gates for its NFT launch on Twitter and Telegram. No gates work well for first-time mints and where there is no competition involved. They also work well when it is tied to a special access step for the NFT. In this case, bloXmove was provided with a custom-design idexo-hosted portal where its users could verify they had the NFT to gain access to a KYC step for a private sale. The KYC provider was integrated with the idexo-hosted portal. Once KYC was approved the portal changed to show a link to a private sale step hosted by bloXmove. This private sale sold out very quickly and it was a big success.
Many community members from the idexo community participated in the bloXmove NFT launch. This is an extra value for CDK customers that idexo’s large community provides an immediate audience lift for their campaigns. At the same time, it would be great to have a way to recognize the idexo community members who consistently support CDK customers. KRED provides a way to do that. Having an upgraded Early Adopter / Community Pro NFT with a profile built up over time across many community initiatives (both inside and outside idexo’s community) also provides a way for community members to build up something of value for themselves.
How we plan on implementing the KRED P2E token:
1. Determine tokenomics
The first step will be to determine the tokenomics, in coordination with our stakers (i.e. we will ask for their guidance through voting). One example of a P2E token we can look to is Smooth Love Potion from Axie Infinity. That for instance has no capped supply. In our case, we expect it will include some amount of vested token distribution to stakers and may include a directional staking pool for the purpose. We’d expect the rest would go to rewarding the completion of tasks and challenges, in-game rewards, and other types of participation by the community.
2. Determine how to manage cross-chain
Another consideration will be how to set this up cross-chain. It could for instance be an independent token on each chain or there could be coordination/interrelation between them.
3. Determine any unique functions the KRED token contract needs to have
Based on the above, and other design decisions that come up we will then write a specification.
4. Create and deploy the token smart contract and set-up the systems for issuing the tokens based on challenge completion
Having achieved a specification, we will then create the contract, deploy it and hook it up to systems such as reward recognition and distribution systesm.
An example consideration will be to think about how airdropped KRED might differ from activated KRED. Airdropped KRED might for instance be a kind of ‘potentially active KRED’ that requires the completion of other ‘community game’ tasks to become tradeable.
Development on the KRED token and systems starts now. We will have regular updates during the planning and implementation process due to the nature of creating the specifications in consultation with our stakers and the wider community and look forward to its eventual launch.
Let us know your thoughts in the comments here and in the groups! Are you looking forward to earning and using some KRED?