Problem in the market

Today, web3 consumer dApps face steep drop-offs in terms of users. The average user retention after 1 month is Dismal Compared to Average Mobile Apps.

On average, just 5% of Uniswap users were still using the platform a year after first signing up, Token Terminal data shows.

This is a major problem that any web3 project needs to resolve in order to survive and grow the user base over time.

Current systems are in-effective

web3 dApps mostly uses token airdrops to their users:

• that attracts lots of airdrop farming practices
• costs more money per user (increases CAC)
• does not represent the history and provenance of work
• mixes the user reputation (signaling value) with financial incentives

The model has failed to retain users for the long term due to issues in distribution, strategy, and fairness. Such techniques flood the dApps with farmers and non-real users, making it difficult to achieve a product-market fit.

dApps need solution that does the power user-identification at the root-level & supports mechanisms to retain them out-of-the box.