Boost.xyz Pioneers New Web3 User Acquisition Model with Incentivized On-Chain Actions

Brian Flynn, CEO of Boost.xyz, recently detailed a transformative approach to customer acquisition and retention in the Web3 space, emphasizing the shift from traditional advertising to direct user incentives. Speaking on Seed Club's "11AM w/ Seed Club" show, Flynn highlighted Boost.xyz's focus on programmatic distribution of token incentives to drive on-chain activity, particularly through their new product, DAU. This strategy aims to redefine how decentralized applications (dApps) attract and retain users in a rapidly evolving digital landscape.

Flynn articulated that the future of customer acquisition in crypto involves directly compensating users for engaging with a product, a stark contrast to conventional ad networks or influencer marketing. He acknowledged the inherent challenges, such as combating sybil attacks and identifying genuine users amidst bot activity. Despite these hurdles, Boost.xyz is actively developing solutions to ensure the integrity and effectiveness of incentivized user growth.

The core of Boost.xyz's model revolves around treating incentives as a direct customer acquisition cost (CAC) to maximize lifetime value (LTV) for dApps. "As long as the revenue that's being generated by application is greater than the actual incentives itself, then it's positive ROI," Flynn explained during the discussion. This involves offering initial incentives to first-time users and then monitoring for sustained engagement and sticky behavior to gauge campaign success.

Looking ahead, Flynn envisions a future where equity itself is tokenized and programmable, allowing for real-time revenue sharing with contributors. He believes this "native onchain incorporation, where everything is just tokens as equity as day one," will become a default model, profoundly motivating employees, contributors, and users by directly aligning their financial success with the product's performance. Projects exploring "revshare tokens" are indicative of this emerging trend.

Boost.xyz's immediate focus is on expanding its DAU product within the Farcaster ecosystem, with plans to launch a dedicated DAU token soon. Seed Club, a venture DAO and accelerator renowned for backing early-stage crypto companies and tokenized communities, hosts discussions like these to explore innovative strategies within the Web3 and community-owned internet sectors. This collaboration underscores a shared vision for sustainable growth and user engagement in the decentralized economy.