Solana is Poised to Lead in Do-to-Earn

5tGG...kNBo
10 Nov 2023
156

As blockchain technology matures, one of its most promising and disruptive use cases is the emergence of "do-to-earn" models. Unlike speculative trading and investing, do-to-earn platforms allow users to earn rewards in tokens and cryptocurrency for performing simple but valuable actions online. Although still early and fragmented, do-to-earn is paving the road for how blockchain technology can transition from financialization to creating widespread everyday utility and value.

One blockchain in particular that is well positioned to unlock the full potential of do-to-earn is Solana. With its high transaction speeds, low fees, and developer friendly architecture, Solana provides the ideal base infrastructure for scalable do-to-earn applications. While gaming has seen the most traction thus far, expanding do-to-earn models into mainstream social, work, commerce, education, transportation, fan engagement, data analytics and other everyday use cases could make Solana the leading blockchain for widespread practical utility.

Background on Do-to-Earn Models



The concept of "do-to-earn" encapsulates a paradigm shift in how blockchain networks create value for users. Rather than just facilitating speculation on assets, do-to-earn platforms reward users with tokens and cryptocurrency for performing almost any online activity that contributes value - whether it is playing games, posting content, selling data, moderating communities, or delivering services. This helps align incentives and democratize participation in a way that extracts less rent from users compared to Web 2.0.

Do-to-earn models surfaced prominently in 2017 with the launch of Steem, a social blogging platform that rewarded content creators and curators with cryptocurrency based on upvotes from the community. However, do-to-earn really entered the mainstream with the rise of play-to-earn blockchain gaming starting in 2020.

Hits like Axie Infinity demonstrated how players could earn meaningful income in tokens and NFT assets from skilled gameplay and community participation. This evolution beyond just speculation opened crypto to wider audiences. Play-to-earn gaming acted as a template for how cryptocurrency could incentivize user behavior in many other aspects of digital life.

Since 2020, do-to-earn models have expanded across social platforms, gig marketplaces, streaming, transportation, data analytics, fan communities, and more. However, these applications still largely remain within the crypto native audience. The longer-term promise is bringing do-to-earn models to billions of mainstream consumers who are not currently cryptocurrency users.

Solana Differentiating Technical Attributes


Many blockchain platforms aim to support do-to-earn systems. However, Solana possesses several unique technical attributes that make it particularly well-suited as the base layer infrastructure for global consumer do-to-earn applications:

Extremely fast transaction speeds - Solana currently processes up to 65,000 transactions per second with 400 millisecond block times. This level of performance is orders of magnitude faster than other major blockchains today, allowing much heavier on-chain activity.

Low transaction fees - Solana transaction fees average just $0.00025, negligible for users. This allows apps to incorporate many microtransactions.

Scalability roadmap - Solana Labs states the network can theoretically scale to 710,000+ transactions per second through improvements like tower BFT and Turbine sharding.

Proof-of-history - Solana's unique proof-of-history protocol optimizes for speed by assigning each transaction a timestamp as a cryptographic hash. This avoids inefficiencies of traditional proof-of-work.

Developer experience - Solana prioritizes simplicity and usability in its technical architecture and documentation, making building dApps accessible. 

Claimed energy efficiency - Solana Labs states the network uses far less energy than proof-of-work blockchains like Bitcoin and Ethereum thanks to its proof-of-stake model.

These differentiating attributes make Solana arguably the most future-ready smart contract platform for supporting the next generation of high usage consumer decentralized applications from a technical perspective.

Overview of Current Do-to-Earn Applications on Solana


Solana's ecosystem already demonstrates surprising diversity across multiple do-to-earn models despite still being early days. Here is a landscape overview of initial do-to-earn innovation on Solana:

Star Atlas

Even in its early stages, the immersive sci-fi strategy MMORPG Star Atlas has over 100,000 monthly active users - showcasing the appeal of high quality gameplay melded with crypto rewards. Inspired by EVE Online, players can explore galaxies, craft spaceships, mine resources, form alliances, conquer territories, undertake quests, and earn rewards for in-game achievements. With triple-A graphics and designs by legendary game artists, Star Atlas offers immense depth and progression for players to immerse themselves in its metaverse for hundreds of hours. Its collaborative gameplay fosters tight-knit communities and guilds. As Star Atlas progresses through its ambitious roadmap, it has potential to be one of the deepest and highest earning play-to-earn universes spanning casual and hardcore gamers.

STEPN

One of the biggest crypto breakout successes this year, STEPN demonstrates how fitness apps can provide an intuitive gateway to onboard mainstream consumers into do-to-earn models. STEPN pays users to walk, jog and run outdoors using integrated phone sensors and GPS tracking. Earned tokens can be used to mint sneaker NFTs which boost earning power. STEPN proved people are willing to engage in physical activity more if well incentivized.

DeFi Land

With over 50,000 monthly users, DeFi Land offers a pixel art virtual world with Playstation 1-era aesthetics where players can explore lands, undertake quests, trade NFTs, farm yields, customize avatars, hold virtual events, vote on governance, and more. Regular expansion packs add depth. Income streams from staking, mining liquidity pools, trading NFTs, and special edition NFT drops provide myriad ways to earn. The team's priority on community building provides a solid foundation. If DeFi Land can keep enhancing gameplay and move beyond just yield farming, it could fulfill its promise of evolving into a long-term metaverse hangout.

Aurory

This highly anticipated multiplayer RPG immerses players in a fantasy world with deep lore across seven kingdoms. Players can own lands and resources, craft weapons and potions, undertake procedural quests, siege castles, practice professions, participate in governance, and trade NFTs. With triple-A quality art and sound design, Aurory aims for gameplay longevity over quick earning. Its emphasis on political intrigue and player-driven conflicts sets it apart from other P2E games. If Aurory can deliver on its vision, it could become one of most engaging and rewarding blockchain gaming metaverses upon launch.

Solana has the blockchain architecture for AAA-quality gameplay for the next generation of crypto gaming.

Solana is also home to a new generation of social apps incorporating do-to-earn incentive models.

Grape Protocol

Grape combines game design, blogging, video and social networking across its app and Discord server. Users are rewarded with tokens, NFTs and badges for activities like posting content, curating communities, evaluating posts, referring friends, completing quests and climbing leaderboards. With over 140,000 monthly active users, Grape demonstrates how creator incentives and participatory gaming elements can drive engagement. If Grape focuses more on quality discourse and continues expanding its token utility, it could become a leading social hub on Solana.

Solcial

Solcial aims to disrupt centralized social media through user-owned social graphs and built-in tokens that reward participation. With censorship-resistant content and democratized governance, Solcial represents the frontier of community-owned social media. Its growth depends on competing against Big Tech network effects and avoiding an echo chamber environment.


BULB ( The Best D2E )

BULB is transforming the world of blogging and social media by introducing an innovative suite of features that empower creators. Built on the Solana blockchain, BULB allows users to earn, own, and monetize their content like never before.

A major feature that sets BULB apart is article NFTs. Writers on BULB can turn their posts into unique crypto collectibles that are tied to their Solana wallet. These special NFT articles can be displayed, traded, or sold, giving creators true ownership over their content.

BULB also pioneers a Read-to-Earn model where readers get rewarded in BULB tokens for engaging with posts. Readers can earn crypto simply for reacting, commenting, and discussing content. This incentivizes participation beyond just writing.

For writers, BULB's Write-to-Earn system issues token rewards based on the quantity and quality of posts. The more content a user contributes, the more they can potentially earn. This lets creators monetize their skills and time spent blogging.

Active community members on BULB can also take advantage of Engage-to-Earn opportunities. Moderating discussions, reporting inappropriate content, referring friends, and other platform contributions are all rewarded with BULB token earnings.

As BULB continues maturing, upcoming additions like exchange listings, cash out capabilities, and mobile apps will make it even easier for mainstream users to embrace the platform. BULB represents the next evolution of social media - one that empowers people over institutions.

Only1

Only1 offers an NFT-based social platform where users can mint tokenized representations of their identity and connections into a Soulbound Token. This DeFi-enabled social graph unlocks new opportunities for community coordination and platforms owned by users rather than advertisers. If adoption spreads beyond crypto enthusiasts, Only1 could pioneer entirely new social dyanmics online.

These projects highlight the potential for social platforms on Solana to leverage incentives for community-based discovery, moderation and creation - unlocking deeper user involvement.

Creators and Entertainment


Solana also provides the infrastructure for web3 content monetization and fan engagement.

Audius

Audius offers a decentralized streaming platform for music distribution, allowing artists to share songs directly with fans and earn from tips, and feature promotions. Audius provides tools for artists to embed rewards and unlock exclusive benefits for supporters. If Audius can onboard established artists, it could disrupt incumbent centralized music streaming models. 

Metaplex

Metaplex powers the creation, minting and discovery of NFTs on Solana through its open protocol and tools. Adopted across art, collectibles and gaming NFTs, Metaplex demonstrates how Solana facilitates scalable digital asset issuance and economies between creators and collectors. Its low platform fees help creators retain earnings. With Solana NFT volumes surpassing other chains, Metaplex provides critical media infrastructure.

Solana Micropayments

Beyond just Audius and Metaplex, Solana's fast transaction speeds and negligible fees make it ideal for adding micropayments across user-generated and creator-focused platforms ranging from Reddit and Twitter-like social networks to Roblox-style gaming metaverses. Integrating Solana transfers can unlock new tipping, subscription, pay-per-use and loyalty token models across entertainment experiences to better compensate creators.

Solana provides the payments rails and infrastructure for the next generation of digital creator economies.

Infrastructure


Critical tools and protocols enable the broader Solana ecosystem.

Phantom Wallet

Phantom is the most used wallet for accessing Solana dApps with over 1 million monthly active users. Its slick UX and deep app integrations make Phantom a gateway to Solana's do-to-earn ecosystem.

Ankr Protocol

Ankr lets users earn yield by supplying computing power to blockchain networks. By paying users to run nodes, Ankr democratizes participation in core infrastructure to broaden how people engage in cryptonetworks beyond just speculation - unlocking new passive income streams.

Orca Platform

Orca offers a user-friendly portal for spinning up Solana validators to help secure the network and share in inflation rewards. Opening validator access expands decentralization. Orca's stats dashboard helps everyday users understand staking returns.

These critical tools and infrastructure demonstrate how Solana's ecosystem extends beyond just end-user applications.

Key Attributes of Solana Driving Do-to-Earn Innovation


Several key technical attributes make Solana well suited for do-to-earn experimentation:

Speed - Do-to-earn apps require fast feedback loops between user actions and earned rewards distributed on-chain. Solana's 1 second block time enables real-time earning.

Low fees - Micro-rewards for small user actions would be prohibitive on chains with higher transaction costs. Solana makes microtransactions viable.

Scalability - Digital economies thrive on engagement from millions globally, which requires technical throughput to support mainstream audiences.

Composability - Do-to-earn apps benefit from easy composability with one another and with Solana's DeFi ecosystem.

Mobile focus - Solana's architecture is optimized for mobile use cases that will be key to mainstream do-to-earn adoption.

Developer ecosystem - Solana's documentation, hackathons, grants, and tools accelerate do-to-earn app prototyping.

These advantages have catalyzed do-to-earn innovation on Solana across gaming, social, data, gig work, retail, and more - making Solana arguably the leading hub for do-to-earn experimentation.

Key Challenges Facing Solana Do-to-Earn Adoption


To transition from their current limited scope to truly mainstream consumer adoption, Solana do-to-earn apps need to confront challenges around:

Speculation and volatility - Excessive trading of reward tokens creates volatility that limits their use as proper compensation for users. New tokenomic designs are needed to counter this.

Legal and regulatory uncertainty - Opaque government policies around do-to-earn currently mean projects have to tread carefully regarding token usage.

Platform risks - Bugs, hacks, failed governance moves, and technical mishaps can quickly erode user trust in nascent platforms. Battle-testing is required.

Incentive misalignment - Without rigorous design, incentives can become zero-sum and extractive rather than creating sustainable shared value between platforms and users.

User experience - The learning curve for using crypto apps remains steep for average consumers used to mobile and web 2.0 products. Onboarding must be vastly simplified.

Discoverability - Helping users identify quality do-to-earn opportunities amidst scams and low signal-to-noise remains challenging but vital.

Overcoming these obstacles through a combination of technical innovations, strategic partnerships, community governance, updated policies, and compelling product experiences will be key for Solana do-to-earn apps to fulfill their considerable mainstream potential.

Projected Future Growth and Evolution of Solana Do-to-Earn


Solana's do-to-earn ecosystem remains in its infancy today. But based on comparable previous platform innovations like mobile, forecasts for user growth and evolution for mature do-to-earn applications built on Solana include:

Users

- Monthly active do-to-earn users across all apps on Solana could reasonably grow 10-50X over the next 2-3 years from around 1 million today to 10-50 million MAU.

- Early traction will be concentrated among crypto native users already familiar with Solana. Mainstream consumers will follow once onboarding and experiences are sufficiently simplified.

- Geographic distribution will expand beyond Western users to global emerging markets where mobile-first populations can benefit most from new earning opportunities.

Categories

- Gaming is likely to drive significant near term growth thanks to intuitive appeal. Different genres from RPGs, virtual worlds, arcade, casual, and competitive social gaming will all expand.

- Social platforms will see organic adoption as Solana's contrasts with Big Tech alternatives become more widely understood around data ownership, content monetization, community governance.

- Fan engagement with creators via NFT benefits, social tokens, and participation incentives will take off as media industries seek to deepen direct relationships amidst platform dependences.

- Do-to-earn models will spread across fitness, location services, transportation, data analytics, crowdworking, commerce, finance, and more daily use cases where incentivization can dramatically reshape behaviors.

Experiences

- Mobile-first onboarding will dominate as smartphones remain the primary interactive devices globally across demographic and geographic segments.

- Casual users will participate across multiple apps simultaneously as integrating crypto into daily activities becomes mainstream. This "dual life" will see specialized power users treating do-to-earn as primary income streams.

- Discoverability will improve via curated lists, influencer endorsements, app stores, and social chatter as users identify valued earnings opportunities.

- Interoperability across chain boundaries will expand as users want to seamlessly engage across Solana, Ethereum, other ecosystems while retaining identities, assets, and data.

Models

- Direct purchase models will grow as consumers bypass platform middlemen. Users will pay creators directly for content, data, services. Apps will act as facilitators rather than rent extractors.

- Do-to-earn integration will expand into SaaS productivity tools, decentralized marketplaces, crowdfunding, freelancing, cloud storage, VPNs, and other digital services we use daily.

- Hybrid on-chain/off-chain models will emerge for activities where intensive computation and data storage is required. Data analytics, ML training, gaming can leverage Solana for incentives and infrastructure.

- Experimental new paradigms will leverage Solana for coordination and incentives. Ideas like data unions, compute unions, collaborative professional partnerships, and social good ecosystems will be unbounded by legacy thinking.

The combinations of use cases and models building on Solana to reward value creation will be as limitless as human ingenuity across every sector Solana's tech can enhance.

Expanding Design Patterns for Sustainable Rewards


For their "do-to-earn" models to avoid being dismissed as unsustainable gimmicks, Solana platforms will need to expand token reward design to better align incentives between networks and users:

Two-sided reward schemes - Users receive tokens for contributions while portions of fees, revenue, or activity on the other side also go towards rewards in a circular flow. This rewards aggregate platform growth.

Dynamic rewards - Earnings per action can algorithmically calibrate based on indicators like user reputation, platform sustainability, sporadic activity spikes etc. to maintain equilibrium.

Value-based rewards - Compensating activities that strengthen communities like thoughtful posts, helping new users, creating enriching content, not just raw usage or social graph metrics. 

Percentage-based rewards - Awarding users a percentage share of revenues, fees, or other platform income streams helps align incentives with long-term success.

Intrinsic motivation support - Avoid over-incentivization that crowds out natural intrinsic motivations. Enable autonomy and mastery alongside extrinsic token rewards.

Time-based vesting - Rather than instantly liquid rewards, longer vesting periods tie earnings to long-term platform commitment while reducing speculative volatility.

By combining multiple mechanisms like these, Solana do-to-earn models can move far beyond today's binary transactional rewards that are trivially gamed, unsustainable, or extractive if poorly designed. The most engaging communities artfully balance incentives with human meaning.

Proposals for Improving Solana's Do-to-Earn Ecosystem


Here are my top proposals for how the Solana community can help mature the do-to-earn ecosystem:

Expand fiat onramps - Adding more seamless fiat purchase options for SOL and SPL tokens will simplify onboarding new users.

Cross-chain interoperability - Bridging with networks like Ethereum can bring external liquidity and users into Solana dApps.

Incubators and accelerators - Programs to nurture promising do-to-earn startups could catalyze innovation with funding, mentors, and community.

Tokenomic best practices - Projects need guidance on designing sustainable token economic models that responsibly balance system health and user rewards.

Reputation systems - Letting users rate projects and employers can increase accountability around issues like unfair rule changes.

Mobile optimization - Prioritizing mobile-first experiences expands convenience of earning through do-to-earn dApps on the go.

Compliance infrastructure - Shared services and protocols for regulatory compliance (KYC, etc) will simplify legal requirements for projects.

Educational initiatives - Creating more learning resources around Solana and responsible do-to-earn participation will allow onboarding new mainstream users conscientiously.
Coordinated efforts across funding, development, legal, and education can help progress the ecosystem. But open collaboration between projects and leaders will be key.

Practical Examples of Innovative Do-to-Earn Models


Here are some practical examples of innovative do-to-earn model designs that demonstrate the vast possibilities:

Microwork tasks

A platform where users get paid in tokens for completing microtasks like data labeling, transcription, content moderation etc. Provides accessible work opportunities without geographic limits.

dApp bounty boards

Developers post bounties for users who spot bugs, create tutorials, perform security audits, and suggest new features. Compensates users for contributing expertise.

AR treasure hunts

Games where users earn tokens for seeking out virtual treasures hidden around real world maps and locations, only visible via AR. Blends virtual rewards with physical exploration.

Prediction tournaments

Users compete in tiered prediction game tournaments to forecast event outcomes for status and token prizes. Leaderboards foster ongoing engagement.

DAO participation

Compensating community members in governance tokens for voting on proposals, creating initiatives, moderating, and taking other DAO management actions.

Q&A platforms

Users earn tokens for asking and answering questions in topics they have expertise in. Higher rewards for contributions highly rated by the community.

Experience marketplaces

Sell unique IRL experiences, tours, meals, events and activities to buyers in exchange for tokens. An "Airbnb for experiences" model.

These examples demonstrate the vast range of possible do-to-earn applications beyond just gaming and DeFi. Some best practices stand out:

  • Rewarding value-add - Compensate users for contributions that go beyond minimum requirements to uniquely benefit communities.
  • Aligning incentives - Structure rewards around actions that reinforce positive community behaviors and norms long term.
  • Fair compensation - Ensure users feel adequately rewarded for their time and skill invested via tokenized earnings.
  • Variable rewards - Vary reward amounts based on effort, quality, and demand to prevent declining incentives over time.


Thoughtfully designed incentives lead to genuine user engagement, platform loyalty, and community growth rather than just speculative activity.

Guiding the Evolution of Responsible Do-to-Earn Models


As Solana's do-to-earn ecosystem expands, maintaining thoughtful and ethical approaches should be prioritized:

  • Consider unintended consequences - Will rewards produce meaningful value or just inactive loyal users? Structure incentives carefully.


  • Build for self-governance - Let engaged stakeholders like top creators and users advise on policies to avoid centralized control.


  • Plan token dynamics for sustainability - Supplies should expand and contract dynamically based on activity and value generated, not fixed ceilings.


  • Honor commitments - Users invest time earning rewards - don’t unexpectedly dilute or remove expected benefits without notice.


  • Promote education - Users need to learn crypto management best practices to avoid losing access to wallets and keys.


  • Stay ahead on compliance - KYC, activity records, tax guidance etc. will be expected. Don’t wait for regulators to impose standards externally.


  • Share knowledge openly - Document challenges and best practices to benefit the whole ecosystem. Avoid siloing lessons learned.


With conscientious leadership, Solana do-to-earn can uplift people worldwide while avoiding the pitfalls of exploitation seen on traditional gig platforms.

Conclusion

Solana has the blockchain capacity and developer platform to mainstream do-to-earn models across gaming, social, work, education, and countless other domains. But realizing this enormous potential requires resolving limitations in sustainability, usability, compliance, and fairness thoughtfully.

Do-to-earn economies could genuinely help lift millions out of poverty by creating livelihoods around digital community participation. This feels like the next step for crypto to impact humanity.

Thank you for reading! If you found this content valuable, please consider supporting my work


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