In what seems like a recurring pattern of oddity, the crypto rebound has witnessed the rise of yet another trend that has captivated millions of people around the globe: The Tap-To-Earn frenzy, often described as “the NFT bubble of the current crypto cycle” destined to burst any time soon.

To-Earn models have found relevance in the existing crypto climate and while some have yielded positive outcomes, others have turned out to be scams or pump-and-dump schemes.

This article sheds light on To-earn projects, as an incentive-based strategy in web3, highlighting its rise, successes, and challenges.

A casual observer of the trends and events in the cryptocurrency ecosystem is likely to relate with how games, tasks, and even a tapping frenzy have come to hold a place of strategic importance in the web3 space, overshadowing crypto airdrops–or at least outshining them in this current cycle!

A Brief History

To-Earn models started as a gaming incentive activity incorporating cryptocurrency payment. They became increasingly popular in the 2021 bull market with play-to-earn (P2E) gaming topping the chart as a focal point in crypto gaming and with platforms like Discord serving as a hub for gamers and enthusiasts alike.

The play-to-earn gaming model was quite a success. It attracted significant VC funding, onboarded millions of people who were seeking adventures and rewards, and gave rise to similar models such as move-to-earn, walk-to-earn, write-to-earn, tap-to-earn, etc.

Most importantly, it was incorporated into several metaverse platforms drawing both experienced crypto gamers and beginners, and while the hype lasted, it disrupted the traditional gaming model.

In the current cycle, marked by the rise of memecoins and the rebound of the crypto market,tap-to-earn platforms, a popular type of To-Earn model, have emerged with a significant presence on Telegram. This to-do model is by far the most popular today with such projects as Notcoin, TapSwap, Hamster KombatKombat, YesCoin, etc. leading the way.

Some Notable Achievements

To-Earn Crypto projects are primarily designed to incentivize user engagement in a crypto project. They center around users' participation in specific tasks or activities related to the platform and distribute tokens as rewards for the time and effort spared.

They have not only brought significant attention to the web3 space, but they have also created new opportunities for developers and users alike. Besides, varying degrees of the successful implementation of this model have been recorded, with some projects exhibiting more potential than others.

It is safe to rely on available data and such metrics of success as community growth, reward distribution, user engagement, etc., to discuss the success of to-do models, especially from the standpoints of some of the successful projects in this space.

Notcoin, for example, is one of the first breakout To-Earn projects that brought significant attention to the tap-to-earn model after it massively rewarded its participants. Its vast community on Telegram has also been regarded as an indication of its potential to succeed.

Similarly, TapSwap is also another clicker game incentivizing users to compete for points that can be redeemed with its native token upon completion. This ongoing exercise started a tapping frenzy in countries like Nigeria, and it currently boasts over 20 million users on Telegram.

Challenges Facing To-Earn Crypto Platforms

Collecting a vast army of users to complete specific tasks or engage in activities for rewards may appear to be an easy thing to do. But the fact is that it requires at least a fair amount of active participation to be eligible for rewards.

Unlike Crypto airdrops, to-do models engage the mind of their participants, incentivizing them to behave in a certain way(ie playing games, walking, reading, etc.).

The long-term sustainability of this model is debatable not only because its success depends on a number of factors such as user retention and regulation, but also because it is susceptible to token inflation, market manipulation, hacks, etc.

To succeed in the long term, it has become necessary for To-Earn projects to evolve beyond their current status and create real-world use cases. Most especially, they must be able to navigate the following challenges :

User Retention: It is one thing to grow a user base; it is quite another to retain the users. Experience has also shown that users may get bored with the same product over time. It's crucial to constantly update or introduce new dynamics to it.

User Experience: Crypto generally has a UX problem resulting from a complex web interface. Building a relatable platform for users can enhance user experience and foster long-term growth. Leveraging account abstraction, for example, offers a seamless interaction.

Crypto Regulation: As the model is relatively new, its sphere of influence extends beyond the crypto ecosystem. It can be subject to various local regulations. It's important for to-do projects to attain a significant level of compliance and stay updated on the latest developments in the regulatory space.

Ta-da As a Case Study

Ta-da, a newly launched decentralized to-earn platform accessible on iOS and Android, is leveraging blockchain technology and account abstraction (AA) to streamline ethical and equitable data collection, enabling users around the world to participate in and benefit from the digital economy.

As a To-Earn high-quality data collection platform , it seeks to leverage account abstraction to create a decentralized marketplace for data crowdsourcing and incentivizing contributors to provide data for companies in various markets.

Making user onboarding experience as seamless as possible required Ta-da to launch user-friendly mobile apps, making it easy to collect data for companies through high-quality task completion.

With account abstraction, it is able to create a single entry point for contributors to interact with companies. During the testing phase this solution also enabled it to onboard over 15,000 beta testers who completed 6 million missions or tasks altogether. (This would not have been possible without augmenting its blockchain infrastructure with a simplified user experience).

Most importantly, its onboarding process begins with a client company submitting a request; and Ta-da splitting the request in small missions (ie talking to your phone, annotating pictures, following a social media account or checking audio files)

and onboarded users completing the missions for rewards once validated.

Conclusion

Incentives have continued to play a crucial role in the onboarding of new users to the crypto space. To-Earn platforms sprang up about the same time that crypto airdrops became a popular marketing strategy for crypto projects.

The success of this model has resulted from the growth rate of the projects incorporating the gaming element, the value of their tokens, and the incentive distribution mechanism they apply.  However, the long-term sustainability of this model depends on several factors such as its ability to retain its user base and create real-world use cases.