Web3 Product Report: BonusBlock

I recently came across a few new web3 questing platforms and my eye fell on BonusBlock. With its impressive 1.6M+ users and novel AI scoring mechanics, it is probably one of the most interesting questing apps of 2024. Naturally, I decided to dig deeper.

What is BonusBlock?

BonusBlock is a Web3 marketplace that connects high quality users with newly established and existing projects in Web3.

Before users can join BonusBlock, their activity will be analysed and then their profile categorised. They can be categorised into 5 different tiers depending on their quality levels and wallet characteristics.

After users have been categorised, projects can search for them and request them to engage with their projects.

By leveraging AI to analyse user activity, BonusBlock ensures that genuine and active blockchain users are matched with projects looking for sustainable user acquisition and retention.

BonusBlock has a marketplace page where users can earn fees on-chain activities while being acquired by projects. In this part, they search for projects and interact with them via activities and earn.

What are the problems BonusBlock solves?

Bot and Mercenary User Activity

• Problem: In the Web3 space, many projects face issues with bots and mercenary users who exploit reward systems without genuine engagement. This leads to inaccurate metrics, wasted resources, and ineffective marketing campaigns.
• Solution: BonusBlock uses AI to analyse on-chain user activities and assign quality scores. This system helps identify and reward genuine users while filtering out bots and low-quality participants​.

Example, for a newly created account with no activity, the user will be place in tier 5 (image below)

User Acquisition and Retention

• Problem: Attracting and retaining high-quality users in the Web3 ecosystem is challenging due to the decentralised nature of blockchain technology and the competition among various DApps.
• Solution: By offering a marketplace for gamified loyalty programs and reward systems, BonusBlock ensures that users are continuously engaged and incentivized to remain active on the platform. The AI-driven quality scoring ensures that the rewards are distributed fairly and effectively to genuine users​.

Depending on the score of a user, different projects will make offers to them to perform actions (image below)

The user can view the details of the project and perform the actions

Lack of Targeted Marketing Tools

• Problem: Many blockchain projects lack effective tools to target and engage the right audience, leading to inefficient marketing spend and poor user engagement.
• Solution: BonusBlock provides a platform where DApps can run targeted marketing campaigns by rewarding high-quality users identified through the AI quality scoring system. This helps projects optimise their marketing efforts and achieve better results.

List of projects users can pick from to increase their wallet activity is displayed on a page (image below)

What is BonusBlock Unique Selling Proposition (USP)?

Now, let’s look at what makes BonusBlock stand apart from their competitors?

AI-Driven Quality Scoring

• BonusBlock: Utilises AI to analyse on-chain user activities and assign quality scores. This ensures rewards are distributed to genuine, high-quality users, filtering out bots and low-quality participants​

Competitors:

• RabbitHole: Focuses on educational quests without AI for quality scoring. Rewards are based on task completion, which may attract users interested in short-term gains​ (Source)
• DappRadar: Provides analytics and insights on DApp usage but does not employ AI-driven user quality assessment (Source)
• Glaxe: Uses credential data to verify user activities but lacks an AI-driven scoring system (Source)

Gamified Loyalty Programs

• BonusBlock: Offers gamified loyalty programs that promote sustained user engagement. These programs are designed to build long-term loyalty and community involvement​​.

Competitors:

• RabbitHole: Uses gamified educational quests, primarily focused on onboarding and educating new users rather than long-term engagement​
• DappRadar: Focuses on analytics and insights, without offering gamified loyalty programs.
• Glaxe: Utilises credential data for various Web3 activities but does not have gamified loyalty programs.

BonusBlock Product Feature Analysis

Currently Live Features

BonusBlock currently offers the following features;

1. AI-Powered Activity Analysis:

This feature uses artificial intelligence to analyse user activity across different blockchain networks. It helps in identifying user behaviour patterns and potential investment opportunities within the platform. (image below)

2. Tokenized Rewards System:

BonusBlock has implemented a rewards system where users can earn tokens based on their participation and activity within the platform. (image below) These tokens can be used for various purposes, including staking and gaining access to premium features.

3. Farm Experience Points:

When users interact with a partner’s Bonus Block incentivized programs, they can farm XP to be in for a chance to win a $BONUS allocation at a discount. This also increases their on-chain activity and makes them eligible for better offers from projects

Most Valuable Features

Let’s look at some valuable features for projects and for users;

For Projects

AI-Driven Quality Scoring

• Description: This feature analyses on-chain user activities using AI to assign quality scores. It ensures that rewards and engagement are targeted towards genuine, high-quality users, filtering out bots and low-quality participants.
• Value: Projects benefit by ensuring that their incentives and rewards are distributed to real and valuable users, enhancing the effectiveness of their marketing and engagement strategies​

For Users

Tokenized Rewards System

• Description: Users earn tokens based on their participation and activity, which can be used for staking or accessing premium features.
• Value: This system provides users with tangible incentives for their engagement, making their activities more rewarding and encouraging continuous participation​

BonusBlock Product UI/UX Analysis

User Experience and Journey

1. Landing Page

• When a user visits the BonusBlock application page, they are presented with information about the product and a call-to-action to connect their wallet and begin using the application. (image below)

Below the top section, is a section that entices users to join the platform (image below)

2. Wallet Analysis

• Once the user has connected their wallet, they are prompted to get their wallet analysed by the AI (image below)

During the wallet analysis (image below)

• After the analysis is done, the user is presented with some questions to help BonusBlock understand the user more (image below)

When done, the user is directed to their dashboard

3. Dashboard

• After the wallet analysis, a tier is given to the user and is displayed on their dashboard (image below)

From the dashboard, the user can edit their profile picture and add more information about themselves (image below)

To upload a profile picture from the dashboard

To add more information

Users can also get their referral link and earn fees from referrals. When referrals who are staking at least $75 worth of BONUS get acquired, they receive a portion of the fee.

Referrals leaderboard can also be viewed (image below)

4. Farm Experience Points:

• Users can farm XP to increase their on-chain activity which makes them more eligible for more projects and be in for a chance to win a $BONUS allocation at a discount

An example of a project that a user has picked to farm:

Here, the user is required to connect to a thirdparty wallet to continue. After connection, the user is directed to the application of the project to perform some tasks (image below)

5. Earn Fees:

• Users can earn tokens based on their participation and activity within the platform. (image below) These tokens can be used for various purposes, including staking and gaining access to premium features.

After selecting the project to view the details, the user is presented with the list of tasks to perform to earn the attached fee (image below)

• Users can bond their $BONUS token to get acquired by projects to enable them get between 50% to 90% of the fee (image below)

BonusBlock Business Model Analysis

Revenue Generation Approach

1. Transaction Fees

• Description: The platform charges a small fee for transactions conducted within its ecosystem.
• Details: These fees apply to various activities, such as transferring tokens, staking, and interacting with smart contracts.

2. Staking and Yield Farming Fees

• Description: BonusBlock generates revenue by offering staking and yield farming services.
• Details: Users can stake their tokens or participate in yield farming pools to earn rewards. BonusBlock takes a percentage of the rewards as a fee for providing these services.

Below is an image of the time-locked stake users can participate in:

3. Projects Partnerships

• Description: Projects partner with BonusBlock to list their projects on their platform. BonusBlock can charge a fee for users to implement a tokenized rewards system to incentivize user participation and activity within their ecosystem.
• Details: BonusBlock charges projects for the use of its tokenized rewards system, either through a setup fee or a percentage of the distributed rewards.

Example of a partnership:

BonusBlock Monetization Framework

1. Transaction Fees

• Framework: BonusBlock charges small fees for various transactions within its ecosystem, including token transfers, staking, and interactions with smart contracts.

Comparison:

• Ethereum: Charges gas fees for every transaction on the network.
• Binance Smart Chain: Also charges transaction fees but at a lower rate compared to Ethereum.

Differentiation: BonusBlock aims to offer competitive transaction fees to encourage high transaction volumes while ensuring a steady revenue stream.

2. Staking and Yield Farming Fees

• Framework: Users can stake their tokens or participate in yield farming pools to earn rewards, with BonusBlock taking a percentage of the rewards as a fee.

Comparison:

• Aave: Charges fees on staking and yield farming, similar to BonusBlock.
• Uniswap: Collects a small fee from liquidity providers.

Differentiation: BonusBlock enhances its staking and yield farming services with AI-driven insights to maximise user returns and optimise the fee structure.

3. Tokenized Rewards System

• Framework: Projects can use BonusBlock’s tokenized rewards system to incentivize user participation. BonusBlock charges a setup fee or a percentage of the distributed rewards.

Comparison:

• Brave Browser: Rewards users with BAT tokens for engaging with ads.
• Steemit: Users earn STEEM tokens for content creation and curation.

Differentiation: BonusBlock’s rewards system is integrated with AI to ensure that rewards are distributed to genuine, high-quality users, enhancing the effectiveness of engagement strategies.

BonusBlock User and Financial Data

• More than 4M+ users interacted across all protocols (Source)
• BonusBlock currently has over 3 million users (Source)
• BonusBlock reported results for April 2024 are revenues of 84,000 USD (Source)

BonusBlock Product Incentive Analysis

Acquisition Strategy of BonusBlock

Let’s take a look at how BonusBlock acquires it’s users;

1. Incentive Programs and Referral Bonuses:

BonusBlock uses incentive programs to attract new users. By offering bonuses and rewards for referring new users, existing users are motivated to promote the platform, leveraging word-of-mouth marketing to increase user acquisition. (image below)

When referrals who are staking at least $75 worth of BONUS get acquired, the user receives a portion of the fee.

2. Targeted Advertising Campaigns:

BonusBlock invests in targeted advertising on various digital platforms to reach potential users who are likely to benefit from its services. This includes social media ads, search engine marketing, and sponsored content on relevant websites.

BonusBlock can run ads on their Twitter page:

Or their Reddit page:

3. Ambassador Partnership

The Ambassador Program is designed to recognize and reward supporters and creators for their contributions to BonusBlock. By partnering with ambassadors, BonusBlock encourages community members to actively participate and promote the platform, driving organic growth. (Source)

Tasks for ambassadors range from creating content, participating in community events, games, and contests to other engagement opportunities. The most rewarding tasks include social media posts, media creation, and onboarding new users through referrals.

4. Partnerships with Projects and Platforms:

Establishing partnerships with other DeFi projects and platforms helps BonusBlock tap into existing communities and attract users who are already engaged in the decentralised finance space. These partnerships often involve co-marketing efforts and integrations that add value to both parties.

5. Community Building and Engagement:

BonusBlock focuses on building a strong community through active engagement on social media, forums, and events on the following platforms:

• Twitter
• Discord
• Telegram
• Reddit

By fostering a sense of community, BonusBlock can attract users who are looking for a platform that values their input and participation.

By engaging with their audience on social media, it builds the community and encourages referrals (image below)

User Acquisition Channels for BonusBlock

What are the channels or mediums BonusBlock employs to acquire users;

1. Social Media Platforms:

• Channels: Twitter, Discord, Telegram, and Reddit
• Strategy: BonusBlock leverages social media platforms to create brand awareness, share updates, and engage with the community. They run targeted ad campaigns and engage in conversations with potential users to drive traffic to their platforms.

2. Content Marketing and SEO:

• Channels: Blog, Medium, Reddit, Quora
• Strategy: By producing high-quality, SEO-optimised content related to blockchain, DeFi, and AI technologies, BonusBlock attracts organic traffic. Articles, tutorials, and case studies help in educating potential users and establishing authority in the space.

3. Partnerships and Collaborations:

• Channels: DeFi projects, blockchain platforms, fintech companies
• Strategy: Collaborating with other projects in the blockchain and DeFi ecosystem allows BonusBlock to tap into established user bases. These partnerships often involve co-marketing efforts, joint webinars, and cross-promotions.

4. Community Engagement Platforms:

• Channels: Telegram, Discord, Community Forums
• Strategy: Active engagement on community platforms like Telegram and Discord helps in building a loyal user base. These platforms are used for real-time communication, support, and community-driven initiatives.

Retention Strategy of BonusBlock

After acquiring the users or attracting them to BonusBlock application, how does BonusBlock ensure they stick around for the long run?

1. Tiers and Point System

To keep users engaged, BonusBlock employs gamification techniques such as tiers and point systems.. (image below)

The higher a users’ tier, the more projects they can be acquired by and more rewards they become available to gain. This keeps users motivated to increase their level.

2. Referral Leaderboard

BonusBlock also makes use of leaderboards to keep users competitive. (image below)

3. Continuous Feature Upgrades and Beta Access

Regularly introducing new features and offering beta access to loyal users keeps the platform fresh and exciting. Users feel involved in the development process and are more likely to stay engaged.

4. Customer Support and Feedback Loops

Offering top-notch customer support and actively seeking user feedback are critical for retention. BonusBlock ensures users have access to knowledgeable support and that their feedback is used to make continuous improvements to the platform.

5. Exclusive Access and Discounts

Providing long-term users with exclusive access to premium features and special discounts reinforces their loyalty and makes them feel valued. This approach not only retains users but also encourages them to upgrade their plans.

How Can Users Earn on BonusBlock?

Earning Options on BonusBlock

1. Ambassador Program

The Ambassador Program is one of the primary ways users can earn rewards on BonusBlock. It is designed to incentivize users to contribute to the platform’s growth and community engagement.

Roles and Levels:

• Just a Block: Entry-level role; requires reaching Level 5 in Discord.
• BONUS Enjoyer: Intermediate role; requires Level 11 in Discord. Participants start receiving more substantial rewards.
• Blocktopian Master: Advanced role; requires Level 15 and continuous contribution. Participants share in the $BONUS pool and receive the highest rewards.

Tasks and Contributions:

• Content Creation: Creating memes, art, articles, and other content that promotes BonusBlock.
• Social Media Engagement: Posting and sharing content on platforms like Twitter, Telegram, etc.
• Community Events: Participating in or organising events, games, and contests within the community.
• Referrals: Onboarding new users through referral links, which also contribute to earning XP.

Rewards:

• Monthly airdrops
• Marketplace benefits such as XP multipliers, upgraded referral percentages, and discounted tokens
• Recognition and special roles within the community

2. On-Chain Marketplace

The On-Chain Marketplace allows users to earn through various blockchain-based activities:

• Trading and Transactions: Users can earn fees by participating in the marketplace.
• XP Multipliers: Active users in the marketplace earn XP, which can multiply their rewards.
• Discounted Tokens: Users can earn discounted tokens by utilising their XP in the marketplace.

3. Referral Programs

BonusBlock’s referral programs incentivize users to invite others to join the platform. The more users they bring in, the more rewards they can earn:

• Referral Bonuses: Direct bonuses for each referred user who joins and participates in the platform.
• Upgraded Referral Percentages: Higher referral percentages for users who reach certain levels in the ambassador program.

4. Staking and Yield Farming

Although specific details on staking and yield farming are not provided in the initial overview, typical DeFi platforms offer these mechanisms:

• Staking: Users can stake their $BONUS tokens or other supported tokens to earn interest or rewards over time.
• Yield Farming: Users can participate in liquidity provision, earning rewards based on the amount of liquidity they provide to the platform.

5. Content Contests and Engagement Events

BonusBlock organises various contests and events to keep the community engaged and rewarded:

• Content Contests: Users can earn rewards by participating in contests that require creating high-quality content.
• Engagement Events: Regular events that encourage community interaction and provide opportunities to earn XP and other rewards.

Earning Potential for Users on BonusBlock

BonusBlock offers several ways for users to earn rewards, primarily through its Ambassador Program, On-Chain Marketplace, and Referral Programs. Here’s a detailed look at the earning potential, including the associated costs and potential rewards.

1. Ambassador Program

Roles and Associated Costs:

• Just a Block: Requires reaching Level 5 in Discord. The cost here is primarily time and effort spent on engagement.
• BONUS Enjoyer: Requires reaching Level 11 in Discord. This involves more significant participation and content creation.
• Blocktopian Master: Requires reaching Level 15 and consistent high-level contributions. This role demands ongoing engagement and high-quality contributions.

Potential Rewards:

• Just a Block: Opportunity to participate in special events.
• BONUS Enjoyer: Can be reposted by the main Twitter account, potential 100% fee discounts in the marketplace, spotlight opportunities, monthly airdrops, and marketplace benefits like XP multipliers.
• Blocktopian Master: Shares in the $BONUS pool, maximum recognition, close contact with the team, monthly airdrops, and enhanced marketplace benefits.

Estimated Earnings:

• Just a Block: Minimal direct financial rewards, primarily recognition and event participation.
• BONUS Enjoyer: Monthly airdrops can vary, but can be estimated around $50-$200 based on community engagement and performance.
• Blocktopian Master: Significant rewards including a share in the $BONUS pool, which could range from $200-$1000+ per month, depending on overall contributions and community performance.

2. On-Chain Marketplace

Costs:

• Transaction Fees: Minimal gas fees associated with transactions on the blockchain.
• Participation: Active engagement in trading and providing liquidity.

Potential Rewards:

• Trading and Transactions: Users earn transaction fees.
• XP Multipliers: Increased XP can lead to better rewards and discounts.
• Discounted Tokens: By using XP, users can buy tokens at a discounted rate.

Estimated Earnings:

• Moderate Users: $50-$500 per month, based on transaction volume and participation.
• High-Engagement Users: $500-$2000+ per month, especially those actively providing liquidity and utilising all marketplace features.

3. Referral Programs

Costs:

• Effort: Time spent onboarding new users and promoting the platform.

Potential Rewards:

• Referral Bonuses: Direct bonuses for each new user referred. The exact amount can vary, but typically ranges from $10-$50 per new user.
• Upgraded Referral Percentages: Higher referral earnings for active referrers.

Estimated Earnings:

• Casual Referrers: $50-$200 per month, based on the number of successful referrals.
• Active Referrers: $200-$1000+ per month, depending on the effectiveness of their referral efforts and network size.

Summary of Cost:

• Minimal Costs: Time and effort in community engagement, content creation, and referrals.
• Moderate Costs: Transaction fees in the marketplace, participation in staking or yield farming if implemented.
• High-Engagement Costs: Consistent and high-quality contributions, active participation in all platform features.

Potential Monthly Earnings:

• Low Engagement: $50-$200
• Moderate Engagement: $200-$1000
• High Engagement: $1000-$3000+

Final Thoughts on BonusBlock

As competition in the crypto space intensifies, attracting more users (particularly high-quality users) will become more difficult. Also, more and more incentive programs will be released to the public to try and attract users (valuable in the long-term or not).

Some of these users won’t stay on the platform but are only interested in the sale of the token.

BlockBonus solves this problem with their unique approach of using AI to analyse web3 users’ transaction data, on-chain engagement measures, wallet characteristics and other on-chain activity details to derive quality scores for each user. DApps and blockchains using the BonusBlock technology can attract and incentivize high-quality users, who, in return, are rewarded for their genuine and exemplary history of on-chain activities.

Links and References

• https://learn.bybit.com/web3/what-is-bonusblock-bonus/
• https://www.bonusblock.io/
• Welcome to BonusBlock
• https://docs.bonusblock.io/docs/about
• https://www.galxe.com/
• https://dappradar.com/
• https://rabbithole.gg/
• https://medium.com/@_dant3_/bonusblock-buy-back-f2217a5023f6
• https://coinmarketcap.com/currencies/bonusblock/