Should users be rewarded for the value they create? Cryptocurrency staking as a future business model
The internet economy is growing rapidly. When a new tech company with global reach emerges with a large user base, investors are quick to give it a large market cap. For example, Uber is valued at $ 91 billion but is still losing money. Last Thursday, Uber reported its first profitable quarter since it started more than a decade ago. Loyal users are known to be the driving force behind the company’s success. But what does this situation mean for the way companies distribute their profits?
As the digital services market matures and cryptocurrencies and blockchain drive the creation of a new financial system, a rethinking of the customer’s place in a country’s economy is required. If users are a technology company’s most valuable asset, why shouldn’t those users be rewarded for their contributions? Attention is the most important commodity of the 21st century.
While most established companies have loyalty programs that reward their most valuable customers, the new landscape of the technology industry shows that users can receive greater rewards. In addition, many people look to passive sources of income to add to their wealth or just to contribute to stability in an uncertain economy. Enter: staking function of crypto assets.
In staking, blockchain introduced an extremely simple method of rewarding early adopters and loyal customers. As an example, we can look at Tokenplace, an emerging platform for cryptocurrency investors and traders that enables users to buy and sell coins across the landscape of dozens of exchanges without having to switch windows or go through multiple logins. As with many crypto companies, it has a native utility token, TOK, which offers discounts and other rewards to users. In the case of TOK, it also has a use case as a means of liquidity in its multi-exchange trading engine. Now, however, Tokenplace has announced that it will offer its coin holders a staking option, which is seen as a way to appropriately reward users for the value loyalty has given them, the success and attention they bring to the business .
“The move to invest a significant portion of our revenue in user rewards fits in perfectly with our vision of the future company,” said Nina Knox, CEO of Tokenplace. “On the one hand, it’s clear that we owe a lot to our users based on the value they deliver. On the other hand, we are seeing people stepping into crypto to address the uncertainty of the 21st century economy. We recently saw data on the number of Americans leaving low-paying jobs because they are able to boost crypto investments. And we believe we owe it to our users and early adopters to reward them in proportion to the income and investment their attention brings. “
Buying a utility token like Tokenplace’s TOK creates a synergy that benefits both the company and the users. Since users are also token holders, every time they pay for services from a company of their choice, they know that they are also adding value to that company. One way to think about it is to imagine that you are in a grocery store and choose between two cups of yogurt. One is made by a large company that you have no connection with other than their aggressive traditional marketing; a company will do the rest to clearly reward you for your loyalty. The more you buy, the greater the potential reward.
Hence, it is very likely that this trend will be picked up outside of the crypto world as companies seek a competitive advantage by increasing customer purchases. It is clear that DeFi is revolutionizing the financial world, but the token staking pool format can be a very useful tool that can be used by all businesses, from dairy farmers to dairy farmers to smartphone makers and digital content creators.