Hello there! We are the 10 KEI project team which is developing M2E service! It's our 4th posting already! Have you guys checked our last posting? If you haven't done it yet, please check our last posting!
In this post, we intend to organize OUR thoughts on the current issues in the X2E market and the solutions that our 10KEI Team proposes. Currently, aside from a few X2E services, most services are facing significant challenges. One of the primary issues is the constant need to provide rewards, leading to inflation due to token issuance and the depreciation of investment value due to the inability to defend the token's worth. Moreover, a myriad of complex issues reduces the sustainability of projects, ultimately resulting in the collapse of various projects. Let's delve deeper into this matter together!
Problem 1 - Insufficient Deflationary Model
All projects within the blockchain ecosystem tend to have their own token economies. Among them, the role of a deflationary (burn) model is to defend against token depreciation and create a more stable token economy. However, as always, establishing a perfect deflationary model is challenging. Therefore, our 10KEI team has been monitoring many projects, absorbing their advantages, and developing our own deflationary model. Let's take a look together.
- Limiting the issuance of reward tokens
-To prevent token devaluation, we plan to restrict the unlimited issuance of tokens. While we still need to discuss whether to limit the total issuance or daily issuance, we deemed this measure necessary. - Burning of Spending Wallet swap fees
- Burning of a portion of the upgrade cost of NFT items
- Burning of a portion of the participation fees for various in-app events/challenges
- Burning of a portion of the purchase cost of various items, including lottery items and consumables
- Burning of a portion of the lottery fees
- Burning of a portion of the participation fees for guild creation and guild-level challenges in the future
- Burning of a portion of the transaction fees for using our marketplace
- Burning of a portion of the fees incurred during token claims
- Partial burning of up-vote purchase costs (limited)
We are preparing various models, many of which are already utilized in existing M2E services. However, it's important to note that depending on the burning rate and other factors, these models may fail to prevent inflation, as seen in many previous projects' failures. Therefore, we plan to incorporate several deflationary models utilizing the hive system, and we have also decided to burn a portion of the up-vote purchase costs. We appreciate any better suggestions from our community members through comments or DMs.
Problem 2 - Low User Acquisition Frequency and High Churn Rate
The primary reason X2E projects decline is attributed to the decrease in Daily Active Users (DAU). The decline in DAU signifies a reduction in the actual number of users utilizing the app, which, in turn, leads to situations where X2E projects cannot be sustained due to reduced rewards for users and depreciation of token value.
Therefore, X2E projects must continuously strive for new user acquisition while also endeavoring to prevent the departure of existing users. Firstly, as mentioned in the preceding paragraph, a robust token economy like a 'Stable Deflationary Model' is crucial in preventing the attrition of existing app users.
Furthermore, it is essential to make the apps used by users engaging, fair, and of high quality. X2E apps are designed to generate income while engaging in various activities. People want to generate income using X2E aligned with their hobbies and interests. However, low quality, uninteresting app design, and limited features tend to disappoint users. 10kei plans to incorporate diverse and abundant features to meet user expectations. Additionally, through constant updates, we aim to create an environment where users can continuously enjoy without getting bored. We will implement GPS (location, speed-based) systems, ensuring fairness for all without cheating.
We, 10kei, aspire to create a project where we can build joyful memories and grow together with the Hive community. Being a DAPP created on the Hive chain, we hope to blend in with the community and garner significant attention! We are sincerely grateful for your continued readership!
Contact Us
Discord : tenkeidao
E-mail : contact@10kei.io