A Detailed Analysis of Social Mining and Other Cryptocurrency Incentive Methods
Blockchain serves as a database for storing information electronically in digital formats without the need of a third party, thus guaranteeing users' safety and secure transactions of its cryptocurrency systems.
One of its main goals is fair distribution and recording of digital assets which cannot be altered, damaged, or deleted. This simply implies that every information stored on the database, becomes immutable and is governed by the rule of the network, and since cryptocurrency is community-driven, allocation and awarding of incentives on merits for recognition of community members' active participation and contribution became one major community development and building practice.
This research gives a concise explanation of the social mining world, the types of crypto incentive methods out there, the competitive advantages of social mining, a comparison between social mining and other crypto incentives, the threats of social mining, and the importance of social mining to projects and the community.
What types of crypto incentive methods are out there?
Incentives can be in the form of monetary, non-monetary, and tokenized rewards, and they are awarded to help encourage and build loyalty to a particular project.
To oversee the even distribution of these tokens, a new model of governance and digital community has been enabled. These user-owned digital organizations known as Decentralized Autonomous Organizations (DAOs) function formally as hierarchical corporations or loosely organized bodies that utilize the allocation of incentives and rewards as their primary strategy of motivating the community.
There are different methods crypto projects award their community members incentives, some of which include;
To gain a good trading momentum or build a strong valid community sense, most crypto projects utilize this method to incentivize their community members and participants for supporting their project.
In this form of incentivization, cryptocurrencies are shared and sent to different users’ wallets without the owners paying for them. Most times, qualifying for crypto airdrops comes with its terms and conditions. This practice of incentivizing is always open to community members and the general public. Distribution is not fairly awarded in this form of incentive method.
This is another form of tokenized reward and incentive mechanism utilized by most crypto projects. Although this particular incentive method requires some technicality, bounty hunters (people who carry out the bounty program) are rewarded when they discover and help Identify bugs in an existing project protocol.
Basically, the objective of a bounty program is to identify bug fixes, build recognition and also engage investors most of the time, since they serve as precursors for the publicity of mostly their ICOs.
Social mining over time has been regarded as the new savior of decentralized incentives distribution management systems.
Regarded as one of the best crypto community building incentivizing methods, social mining awards excellence and active participation of community members by utilizing different measures such as wallet holding status, earning through points and recognition, and other methods that see to the fair distribution of incentives to community members.
This also is one of the most used methods of rewarding community members for their active participation and support. Most times, incentives and rewards are given to random community members.
Competition is also one of the most active ways of distributing incentives in the crypto community. Members might engage in referral contests, gaming contests, or any activities that lead to having an overall winner. The winner is then thus awarded for his win.
What are the key attributes to compare and contrast Social Mining with other crypto incentive methods?
The table below shows the comparison between social mining and other crypto incentive methods.
What are the competitive advantages of Social Mining (if there are any)?
Social mining has a lot of competitive advantages in the cryptocurrency world. Some of these competitive advantages are access to resources that the competitors cannot get, lower-cost production, and any strategy that can outrun a competitor. Social mining helps to predict feasible risks, boost sales and improve customer satisfaction.
Other forms of crypto incentivizing methods barely focus on relating with the community members. through its onboarding survey program, social mining organizes and allows you to understand and know your community members and more.
Most crypto projects fail early due to bad publicity and some other factors that narrow down to not having a strong community. Since community plays a huge role in the success of any crypto project, Social mining bridges the gap between the project and community members by incentivizing community members using their Decentralized autonomous governance solution which rewards User-generated content.
Thus, since social mining awards community activeness and contribution, community members get to actively participate in the decision-making activity of the community and project. Utilizing DAOs like Social mining helps you to build a healthy community.
What are the threats to and weaknesses of Social Mining (after comparing it with other competitors)?
There are many threats and weaknesses social mining can pose in the crypto world. An article states that "personal social media use at work is usually deemed counterproductive work behavior, reducing employee productivity", though it may help employees to coordinate their work demands and increase work productivity.
Many data mining companies get their security breach. They get the user data generated by one click sign in through their accounts, the user even though alerted, overlook this in getting the work done hastily thereby breaching the security of the user.
Conclusion: Is Social Mining the future for community building?
In conclusion, social mining is important to the successful distribution of incentives and community management. It is not a secret that DAOVERSE, a DAOLabs' social mining platform has gathered some great, skilled, and smart people from the crypto space. A new project introduction to merge data mining and users by DAO makers gives a clear message that the project is worth checking out.
The verbal illustrations, competitive advantages, attributes, and weaknesses of social mining all, therefore, point to a picture of "A future powered by Social mining".