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Content Marketing for Tokenization Projects: Best Practices and Tips

Karolina

30 Jun 2023
Content Marketing for Tokenization Projects: Best Practices and Tips

Tokenization, the process of turning a range of assets into digital tokens on a blockchain network, has proven to be a powerful instrument that transforms industries such as real estate, finance and supply chain management. By augmenting liquidity, facilitating fractional ownership and promoting transparency and safety, it has been a game changer. Though, the success of such tokenization projects hinges largely on effective content marketing approaches.

In this article, we will delve into the prime practices and advice for content marketing curated particularly for tokenization projects. This write-up intends to provide you with useful knowledge needed to effectively promote your tokenization project via content, regardless of whether you are blockchain-based startup exploring tokenization or a service provider in the blockchain realm.

Table of Contents

Significance of Content Marketing in Tokenization Projects

Content marketing is central to propelling and ensuring the success of tokenization projects. It serves multiple functions like educating the target audience, building reputable trust and credibility and generating leads for conversions. Let's dissect each of these roles:

Audience Education

The field of tokenization is relatively uncharted territory where several prospective investors and stakeholders may lack comprehensive understanding about it's practices and benefits. Content marketing fills this knowledge void by offering educational resources.

Audience education

Crafting informative blog posts:

To educate audiences, write recurring blogs that outline basic principles of tokenization, its benefits and practical cases in an understandable manner while avoiding technical terminology.

Creating detailed whitepapers:

Whitepapers are reliable documents offering deep insights into technicalities of tokenization. Constructing whitepapers that narrate technology aspects, token economics and legal factors can exhibit your prowess in this field along with providing valuable data to potential investors.

Making explainer video content:

Due to their engaging nature, videos are excellent succinct tools for explaining complex themes. Therefore, crafting explainer videos that visually depict the process and advantages of tokenization along with real-world instances can educate a larger audience effectively.

Trust and Credibility Enhancement

Tokenization endeavours often require investors confidence and trust in the project team which content marketing can help build and bolster through:

Success stories & case studies:

By publishing positive outcomes from prior tokenization projects through practical case studies, potential investors gain confidence. Such real-life examples demonstrate the effectiveness of tokenization acting as direct proof for your venture.

Thought Leadership Pieces:

By positioning your team as thought leaders via insightful articles you can elevate your project's status within the industry steadily. Publishing assessments, analyses or futuristic concepts helps create an image of a trustworthy authority within the industry.

Conducting Expert Interviews & Opinions Sharing:

When you conduct interviews with industry professionals sharing their views on topics relating to tokenization it lends more credibility to your content. Featuring well-known industry figures allows you to utilize their expertise and popularity towards creating a credible image.

Check out our Interviews! - with Maciej Jędrzejczyk, CEE Blockchain Leader in IBM and Muffie Fulton, Sr. Director of Pharma Solutions at Chronicled

Facilitating Lead Generation & Conversion Catalysts

Efficient content marketing approaches can help in generating leads who can be turned into active contributors or investors in your project through methods like:

Optimizing Call-to-action (CTA) :

Incorporate definitive CTAs that persuasively compel readers to execute specific actions like newsletter subscription, guide download or an update sign up within your content. CTA optimization is effective in capturing leads, pushing them further within conversion funnel.

Creating & Optimizing Landing Pages:

Create specific landing pages carrying targeted information about your project serving as conversion spots. Optimized pages with convincing writing style, visually pleasing design along with lead capture forms enhance chances of conversions greatly.

Ecoterra's website - landing page

Superior Strategies for Content Marketing in Tokenization Initiatives

Boosting the effect and efficiency of your tokenization project strategy relies on the execution of content marketing best practices. These guidelines help in building a robust foundation that captures the attention and engages your target audience. Below are some exceptional practices to keep in mind:

Analysis of the target audience

A comprehensive understanding of your target audience is fundamental before formulating your content marketing strategy. It assists you in the creation of content that aligns with your audience's needs, thereby escalating its significance and influence, by identifying their demographic data, interests, problems, and preferences through detailed research and analysis.

Formulating a content strategy

An explicit content strategy governs your marketing efforts providing uniformity across different channels. Keep these steps in mind while shaping your content strategy.

Formulating a content strategy

1. Establish definite objectives:

Decide on clear measurable targets for your marketing initiative. Are you looking at raising brand recognition, achieving more leads, educating consumers, or pushing for conversions? These specifically defined aims ensure that your content lines up with expected results.

2. Identify Key Performance Indicators (KPIs):

Integrate KPIs that match your goals which can comprise website visits, engagement metrics, conversion rates for leads, email opening rates, or social media metrics. Continuous surveillance and examination of these KPIs help in evaluating the productivity of your content marketing strategy.

3. Arrange a content calendar:

Design a scheduler for planning and orchestrating content formation and distribution which should cover topics, formats, and publishing timelines for your material. A well-managed calendar ensures regularity while also facilitating strategic planning.

Crafting quality engaging material

The quality impinges on the success of your content marketing endeavors along with its resonance with consumers. Here are some tips to create intriguingly enriching material:

1. Creation of informative articles:

Commit time and resources to thoroughly research topics ensuring accurate, timely information offering valuable insights or actionable data to consumers enhancing credibility while positioning you as a trusted resource.

2. Utilize visual aids like infographics and pictures: 

Engaging visual concepts effectively presents complex ideas while making it highly appealing enhancing readership ultimately increasing it’s sharing potential

3. Incorporate storytelling methods: 

Stories deliver substantial emotional impact capturing audiences’ attention while presenting benefits aiding them towards overcoming their challenges invoking inspirations based on real-world examples or narratives

Encourage community engagement via social media

Recognizing appropriate social media platforms maximizing presence thereby fostering relationships instigating interactions absorbing feedback answering queries inviting consumer contributions further leverages additional values while boosting overall engagement

Continually employing these superior strategies continually reassessing based on analytics lifting visibility engaging audiences effectively benefiting tokenization initiatives enhancing achievements

Read more about social media in tokenization project here

Social media platforms

Tips for Effective Content Marketing in Tokenization Projects

To take your content marketing strategy for tokenization projects to the next level, consider implementing the following tips. These tips will help you maximize the impact of your content and drive better results. 

Formulating a content strategy

Increase your reach with collaboration with insiders and thought-leaders

Joining forces with thought-leaders and insiders can notably expand both the reach and credibility of your content. Here are some strategies you can adopt:

1. Interview related pros: Converse with acclaimed pros in tokenization and blockchain space maintaining the value of your content by providing different insights and perspectives. 

2. Cobrand content creation: Encourage thought-leaders to participate in co-branding webinars, podcasts or add guest posts. Their participation can magnetize their followers expanding your reach.

3. Ask for positive reviews: Display testimonials from discussed professionals or influencers with a good impression of your tokenization project on your website, aiding increased trust and credibility.

Incorporate engaging visuals and interactive formats in your content

Introduction of interactive and visual elements helps seize your audience's attention while improving engagement rate.

1. Use visual summaries or infographics: Display complex information as easy-to-understand visuals, making it easier to communicate.

2. Develop calculators or interactive tools: Craft tools that provide estimates of potential returns or aid understanding token economics.

3. Utilize animations or video formats: Exploit the usage of videos showcasing use cases, explaining concepts or highlighting the benefits of your project.

Evaluate performance metrics for refining your strategy

It's vital to analyze data periodically for enhancing your marketing efforts continually.

1. Keep track of important metrics: Using analytics tools monitor vital metrics like website traffic, conversion rates etc.

2. Test various aspects through A/B testing: Check different variations of headlines, CTAs for identifying what resonates well with the audience.

3. Active listening to audience feedback: Pay heed to feedback through surveys or social media interactions allowing you to modify your content strategy accordingly.

Keep pace with industry evolution, provide timely updates

Aligning content with latest industry trends helps maintain relevance which entices audience attention:

1. Keep an eye on latest updates: Staying informed about trending issues enables content addressing challenges and opportunities.

2. Provide analytical insights: Furnishing audience valuable insights helps build a loyal following.

3. Focus on educating the community on newer concepts: Creating tutorials aids brand positioning as a dependable resource in acquiring knowledge about industry happenings.

Customizing content according to buyer's persona boosts engagement rates

1. Segmenting market: Categorising market based on parameters such as demography helps create specific content targeting those segments.

2. Develop targeted solutions: Formulate content focusing on personal challenges and goals.

3. Automation in marketing: Implement automated tools delivering personalised user experiences based on user behaviour.

Conclusion

The driving force behind the success of tokenization projects is undeniably content marketing. Pursuing best practices and adhering to the provided advice can lead to a robust content strategy that can not only educate your audience but also build trust and generate leads. Keys for capturing the attention of your target audience include personalization, joining forces with influencers and utilizing visual and interactive content. Staying in tune with the industry trends, analyzing performance metrics, and constantly fine-tuning your content marketing techniques can fuel the progress and acceptance of your tokenization project. This approach consequently attracts investors and stakeholders, thus marking a substantial influence on the blockchain industry.

Nextrope Tokenization Launchpad Platform

Nextrope Launchpad Platform is a White Label solution in a Software-as-a-Service model that helps you launch your project within a month and fundraise with Initial Coin Offering (ICO) or Security Token Offering (STO).

Our platform allows you to participate in the broad financial market of digital assets. Expand your reach and find investors globally. Tokenize your project and start raising capital within a month!

Tagi

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Aethir Tokenomics – Case Study

Kajetan Olas

22 Nov 2024
Aethir Tokenomics – Case Study

Authors of the contents are not affiliated to the reviewed project in any way and none of the information presented should be taken as financial advice.

In this article we analyze tokenomics of Aethir - a project providing on-demand cloud compute resources for the AI, Gaming, and virtualized compute sectors.
Aethir aims to aggregate enterprise-grade GPUs from multiple providers into a DePIN (Decentralized Physical Infrastructure Network). Its competitive edge comes from utlizing the GPUs for very specific use-cases, such as low-latency rendering for online games.
Due to decentralized nature of its infrastructure Aethir can meet the demands of online-gaming in any region. This is especially important for some gamer-abundant regions in Asia with underdeveloped cloud infrastructure that causes high latency ("lags").
We will analyze Aethir's tokenomics, give our opinion on what was done well, and provide specific recommendations on how to improve it.

Evaluation Summary

Aethir Tokenomics Structure

The total supply of ATH tokens is capped at 42 billion ATH. This fixed cap provides a predictable supply environment, and the complete emissions schedule is listed here. As of November 2024 there are approximately 5.2 Billion ATH in circulation. In a year from now (November 2025), the circulating supply will almost triple, and will amount to approximately 15 Billion ATH. By November 2028, today's circulating supply will be diluted by around 86%.

From an investor standpoint the rational decision would be to stake their tokens and hope for rewards that will balance the inflation. Currently the estimated APR for 3-year staking is 195% and for 4-year staking APR is 261%. The rewards are paid out weekly. Furthermore, stakers can expect to get additional rewards from partnered AI projects.

Staking Incentives

Rewards are calculated based on the staking duration and staked amount. These factors are equally important and they linearly influence weekly rewards. This means that someone who stakes 100 ATH for 2 weeks will have the same weekly rewards as someone who stakes 200 ATH for 1 week. This mechanism greatly emphasizes long-term holding. That's because holding a token makes sense only if you go for long-term staking. E.g. a whale staking $200k with 1 week lockup. will have the same weekly rewards as person staking $1k with 4 year lockup. Furthermore the ATH staking rewards are fixed and divided among stakers. Therefore Increase of user base is likely to come with decrease in rewards.
We believe the main weak-point of Aethirs staking is the lack of equivalency between rewards paid out to the users and value generated for the protocol as a result of staking.

Token Distribution

The token distribution of $ATH is well designed and comes with long vesting time-frames. 18-month cliff and 36-moths subsequent linear vesting is applied to team's allocation. This is higher than industry standard and is a sign of long-term commitment.

  • Checkers and Compute Providers: 50%
  • Ecosystem: 15%
  • Team: 12.5%
  • Investors: 11.5%
  • Airdrop: 6%
  • Advisors: 5%

Aethir's airdrop is divided into 3 phases to ensure that only loyal users get rewarded. This mechanism is very-well thought and we rate it highly. It fosters high community engagement within the first months of the project and sets the ground for potentially giving more-control to the DAO.

Governance and Community-Led Development

Aethir’s governance model promotes community-led decision-making in a very practical way. Instead of rushing with creation of a DAO for PR and marketing purposes Aethir is trying to make it the right way. They support projects building on their infrastructure and regularly share updates with their community in the most professional manner.

We believe Aethir would benefit from implementing reputation boosted voting. An example of such system is described here. The core assumption is to abandon the simplistic: 1 token = 1 vote and go towards: Votes = tokens * reputation_based_multiplication_factor.

In the attached example, reputation_based_multiplication_factor rises exponentially with the number of standard deviations above norm, with regard to user's rating. For compute compute providers at Aethir, user's rating could be replaced by provider's uptime.

Perspectives for the future

While it's important to analyze aspects such as supply-side tokenomics, or governance, we must keep in mind that 95% of project's success depends on demand-side. In this regard the outlook for Aethir may be very bright. The project declares $36M annual reccuring revenue. Revenue like this is very rare in the web3 space. Many projects are not able to generate any revenue after succesfull ICO event, due to lack fo product-market-fit.

If you're looking to create a robust tokenomics model and go through institutional-grade testing please reach out to contact@nextrope.com. Our team is ready to help you with the token engineering process and ensure your project’s resilience in the long term.

Tagi

Quadratic Voting in Web3

Kajetan Olas

04 Dec 2024
Quadratic Voting in Web3

Decentralized systems are reshaping how we interact, conduct transactions, and govern online communities. As Web3 continues to advance, the necessity for effective and fair voting mechanisms becomes apparent. Traditional voting systems, such as the one-token-one-vote model, often fall short in capturing the intensity of individual preferences, which can result in centralization. Quadratic Voting (QV) addresses this challenge by enabling individuals to express not only their choices but also the strength of their preferences.

Table of Contents

In QV, voters are allocated a budget of credits that they can spend to cast votes on various issues. The cost of casting multiple votes on a single issue increases quadratically, meaning that each additional vote costs more than the last. This system allows for a more precise expression of preferences, as individuals can invest more heavily in issues they care deeply about while conserving credits on matters of lesser importance.

Understanding Quadratic Voting

Quadratic Voting (QV) is a voting system designed to capture not only the choices of individuals but also the strength of their preferences. In most DAO voting mechanisms, each person typically has one vote per token, which limits the ability to express how strongly they feel about a particular matter. Furthermore, QV limits the power of whales and founding team who typically have large token allocations. These problems are adressed by making the cost of each additional vote increase quadratically.

In QV, each voter is given a budget of credits or tokens that they can spend to cast votes on various issues. The key principle is that the cost to cast n votes on a single issue is proportional to the square of n. This quadratic cost function ensures that while voters can express stronger preferences, doing so requires a disproportionately higher expenditure of their voting credits. This mechanism discourages voters from concentrating all their influence on a single issue unless they feel very strongly about it. In the context of DAOs, it means that large holders will have a hard-time pushing through with a proposal if they'll try to do it on their own.

Practical Example

Consider a voter who has been allocated 25 voting credits to spend on several proposals. The voter has varying degrees of interest in three proposals: Proposal A, Proposal B, and Proposal C.

  • Proposal A: High interest.
  • Proposal B: Moderate interest.
  • Proposal C: Low interest.

The voter might allocate their credits as follows:

Proposal A:

  • Votes cast: 3
  • Cost: 9 delegated tokens

Proposal B:

  • Votes cast: 2
  • Cost: 4 delegated tokens

Proposal C:

  • Votes cast: 1
  • Cost: 1 delegated token

Total delegated tokens: 14
Remaining tokens: 11

With the remaining tokens, the voter can choose to allocate additional votes to the proposals based on their preferences or save for future proposals. If they feel particularly strong about Proposal A, they might decide to cast one more vote:

Additional vote on Proposal A:

  • New total votes: 4
  • New cost: 16 delegated tokens
  • Additional cost: 16−9 = 7 delegated tokens

Updated total delegated tokens: 14+7 = 21

Updated remaining tokens: 25−21 = 425 - 21 = 4

This additional vote on Proposal A costs 7 credits, significantly more than the previous vote, illustrating how the quadratic cost discourages excessive influence on a single issue without strong conviction.

Benefits of Implementing Quadratic Voting

Key Characteristics of the Quadratic Cost Function

  • Marginal Cost Increases Linearly: The marginal cost of each additional vote increases linearly. The cost difference between casting n and n−1 votes is 2n−1.
  • Total Cost Increases Quadratically: The total cost to cast multiple votes rises steeply, discouraging voters from concentrating too many votes on a single issue without significant reason.
  • Promotes Egalitarian Voting: Small voters are encouraged to participate, because relatively they have a much higher impact.

Advantages Over Traditional Voting Systems

Quadratic Voting offers several benefits compared to traditional one-person-one-vote systems:

  • Captures Preference Intensity: By allowing voters to express how strongly they feel about an issue, QV leads to outcomes that better reflect the collective welfare.
  • Reduces Majority Domination: The quadratic cost makes it costly for majority groups to overpower minority interests on every issue.
  • Encourages Honest Voting: Voters are incentivized to allocate votes in proportion to their true preferences, reducing manipulation.

By understanding the foundation of Quadratic Voting, stakeholders in Web3 communities can appreciate how this system supports more representative governance.

Conclusion

Quadratic voting is a novel voting system that may be used within DAOs to foster decentralization. The key idea is to make the cost of voting on a certain issue increase quadratically. The leading player that makes use of this mechanism is Optimism. If you're pondering about the design of your DAO, we highly recommend taking a look at their research on quadratic funding.

If you're looking to create a robust governance model and go through institutional-grade testing please reach out to contact@nextrope.com. Our team is ready to help you with the token engineering process and ensure that your DAO will stand out as a beacon of innovation and resilience in the long term.

Tagi