Crypto has evolved through Proof of Work, ICOs, and Airdrops for token distribution, each with lessons on network growth.
The concept of Progressive Ownership suggests using revenue sharing and allowing users to opt into ownership for sustainable growth.
Building products that meet user needs, using revenue sharing, and transitioning loyal users to economic ownership are key steps in implementing Progressive Ownership.
User interest in crypto projects is often short-lived and transactional, not fostering psychological ownership.
Psychological ownership is important in changing behavior, increasing loyalty, and fostering contribution in digital products.
Builders in crypto can enhance user retention and engagement by creating a stronger sense of psychological ownership through factors like investment, control, knowledge, and self-congruity.
Points in loyalty programs are a way to move users up the loyalty ladder by rewarding behaviors with tangible benefits and creating emotional connections with the brand.
When designing a points program, consider if points should target user acquisition or retention, if they should be redeemable, and what types of rewards are enticing for users.
Onchain tokens have advantages over traditional points in terms of composability, but drawbacks like speculation impacting consumer behavior and legal/regulatory challenges need to be considered.