Consumer chain projects: The dilemma of technological innovation and user value

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Consumption Chain Project: Pioneer of Industry Transformation or New Tool to Play People for Suckers?

In recent years, a large number of blockchain projects centered around the concept of "consumption chain" have emerged, aiming to attract Web2 users into the Web3 world by lowering barriers and simplifying processes. As the first consumer Layer project in the TON ecosystem, a certain project quickly attracted millions of users due to its EVM compatibility and Telegram point tokenization feature.

However, the development of this project also shows a polarized trend: on one hand, its technological innovation and user growth are remarkable; on the other hand, some users question its business model due to being "played for suckers" while participating in activities. This article will take this as an example to explore whether the essence of the consumption chain is a pioneer of industry transformation or a tool for swapping shells to play people for suckers.

DuckChain被反撸,消费链是行业变革还是换壳Be Played for Suckers?

1. Innovation and Achievements of the Project

Technical Breakthrough: EVM Compatibility and Telegram Ecosystem Integration

The biggest highlight of this project is its EVM compatibility, allowing developers to build applications in the TON ecosystem using the Solidity language, greatly lowering the development threshold. At the same time, through the tokenization of Telegram points, it converts Web2 user points into on-chain assets, further simplifying the user’s entry into Web3. This technical integration not only brings new liquidity to the TON ecosystem but also provides Telegram users with a seamless on-chain experience.

User Growth and Ecological Expansion

Since the launch of the testnet, the project has attracted over 5.3 million users, with the number of paying users in the testnet activities surpassing 1 million, and the on-chain transaction volume exceeding 29 million. After the mainnet launch, the number of active wallets quickly surpassed 1 million, with on-chain transaction volume exceeding 5 million, demonstrating a strong momentum of user growth. In addition, the project has also reached collaborations with several well-known projects, further expanding its ecological landscape.

Token Economy and Incentive Mechanism

The total supply of the project token is 10 billion, of which 77% is allocated to community and ecological development, including 50% for airdrops and 20% to support ecological development, etc. This incentive mechanism aims to attract user participation through airdrops and staking activities while providing financial support for ecological projects.

2. The Concerns Behind Users Being "Played for Suckers": The Hidden Worries of the Consumption Chain

The rules of the activity are complex, and the cost of participation for users is high.

Although the project attracted a large number of users through airdrops and staking activities, some users reported that the rules of the activities were complex and the participation costs were high. For example, users need to stake a certain amount of assets in order to receive airdrop rewards, and in cases of significant market volatility, the value of the staked assets may shrink considerably, resulting in actual returns for users being lower than expected. This design has been questioned by some users as "Be Played for Suckers."

The limitations of tokenizing Telegram points

The Telegram tokenization feature of the project, while lowering the barrier for users to enter Web3, has limited practical application scenarios. Currently, this feature is mainly used for paying Gas fees and participating in on-chain activities, and has not yet formed a wide range of consumption scenarios. This limitation may lead users to doubt the long-term value of the project.

Insufficient ecological liquidity

Although the project is committed to integrating liquidity from multiple ecosystems, the DeFi protocols and applications within its ecosystem are still in the early stages, and liquidity is relatively insufficient. This fragmentation of liquidity may limit users' actual experience, which in turn could impact the project's long-term development.

3. The Essence of the Consumption Chain: Industry Transformation or a Shell Game to Be Played for Suckers?

The potential for industry transformation

The core goal of the consumption chain is to lower user barriers through technological innovation, promoting the migration of Web2 users to Web3. The project's EVM compatibility and Telegram points tokenization function are manifestations of this concept. This compatibility not only allows for a smooth transition of existing Web2 applications into the Web3 ecosystem but also provides developers with more powerful tool support, enhancing user experience and application adoption rates. If it can effectively address issues of insufficient liquidity and limited application scenarios, the consumption chain is expected to become a catalyst for large-scale applications in the blockchain industry, driving the comprehensive development of the decentralized economy.

Be Played for Suckers risks

However, the incentive mechanisms and business models behind the consumption chain are also prone to abuse. Some projects may attract user funds through complex participation rules and high-cost entry, ultimately causing investors to suffer losses. This phenomenon of "Be Played for Suckers," lured by high returns at the expense of user funds, is not new in the blockchain field, especially in the absence of effective regulation, which may exacerbate irrational speculative behavior in the market and harm the interests of ordinary users. Therefore, ensuring the transparency, sustainability, and protection of user rights within the consumption chain mechanism, building user trust, and ensuring the healthy development of the market have become key challenges for its future development.

4. Case Insights: The Dilemmas and Solutions of the Consumption Chain

The Double-Edged Sword of Token Economics Design

The token economic model of the project is at the core of its controversy. Although a majority of the tokens are allocated to the community in an attempt to attract users with high incentives, historical data shows that most tokens devalue significantly within three months after airdrops due to selling pressure. This model can quickly accumulate users in the short term, but if there are no real application scenarios to support it, the token value is difficult to maintain, ultimately leading users to be "played for suckers" due to asset depreciation. For example, the Telegram points charged by users during the testnet activity have a tokenized usage scenario limited to paying Gas fees and staking, failing to form a consumption closed loop.

The distinction between virtual and real in technological integration

Although the project's technological innovation is packaged as "industry revolution," the actual implementation effects still need to be verified. For example, its claimed "integration of multi-ecosystem liquidity" relies on cross-chain bridges and incentive mechanisms, but the total locked value of the TON ecosystem is relatively low, and the underlying support for liquidity integration is weak. In addition, although the development threshold has been lowered through a specific architecture, the DApps in the TON ecosystem are still mainly focused on Memes and simple GameFi, lacking complex applications.

Community-driven sustainability challenges

The "fun community culture" of the project is a highlight of its user growth, for example, attracting millions of users through robot-designed gamified interactions. However, this model is highly dependent on short-term incentives, and user retention is questionable. Data shows that while a large number of users recharge Telegram points during its testnet phase, the growth rate of on-chain transaction volume has slowed after the mainnet launch, indicating that user activity may decline with the end of airdrops. In contrast, a mature consumer chain needs to establish a long-term value capture mechanism, such as converting user behavior into on-chain productivity through DeFi protocols, rather than relying solely on the "traffic-airdrop" cycle.

5. The Future of the Consumption Chain: From "Traffic Game" to "Value Network"

Return to the essence of user needs

The core proposition of the consumption chain should be to lower the entry barrier for using Web3 and create real demand. Tokenizing points to allow users to "seamlessly go on-chain" is an important attempt, but if it only stays at the level of paying Gas fees, it is no different from Web2 point systems. In the future, application scenarios need to be expanded, such as using points for social rewards, content subscriptions, and other high-frequency consumption behaviors, forming a "points-consumption-revenue" closed loop.

Technical Deepening of Liquidity Integration

Currently, cross-chain liquidity integration mainly relies on bridging protocols, but there are prominent issues with security and efficiency. If consumer chain projects want to truly break the ecological isolation, they need to explore more fundamental solutions, such as utilizing ZK technology for lightweight cross-chain validation, or aggregating multi-chain assets through a unified liquidity pool. At the same time, introducing real yield protocols ( like lending and derivatives ) can enhance capital utilization and avoid liquidity "false prosperity".

Construction of Regulatory and Compliance Framework

The vision of "mass adoption" of the consumption chain needs to confront regulatory challenges. For example, points as an entry for fiat currency may involve KYC/AML issues, and the financial attributes of tokenized points may also fall under securities regulation. Projects need to collaborate with compliance agencies to explore the integration of on-chain identity and compliant payment channels, rather than solely relying on "regulatory arbitrage."

6. Conclusion

The case of the consumption chain project reflects the typical contradictions in this track: on one hand, there is the innovative potential for technological integration and user growth; on the other hand, there are the risks of token economic bubbles and short-term profit-seeking. Its future success will depend on whether the expansion of application scenarios can evolve from simple memes and games to high-frequency demands such as social and financial services, whether the so-called liquidity and cross-chain integration can truly enhance capital efficiency rather than just staying on the surface of accounting data, and whether its community governance can shift from short-term profit-driven "suckers" to active ecological co-builders participating in long-term value distribution.

If a consumption chain project only uses the name "lowering the threshold" to actually engage in "traffic harvesting," it is bound to become a tool for "shell swapping and playing people for suckers"; only by deeply binding technological innovation with user value can one secure a place in the industry transformation.

DuckChain being played for suckers, is the consumption chain an industry transformation or a shell game to play people for suckers?

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ChainSherlockGirlvip
· 07-08 20:09
According to a certain Large Investor fren of mine, there really is something to the lack of Liquidity...to be continued
View OriginalReply0
OnChainDetectivevip
· 07-07 15:58
just another web2-to-web3 experiment... wallet cluster analysis shows 90% are paper hands tbh
Reply0
LuckyBearDrawervip
· 07-05 23:27
The charts are all messed up, it doesn't have the vibe.
View OriginalReply0
MelonFieldvip
· 07-05 23:21
Who would want to use something so complicated?
View OriginalReply0
WalletDetectivevip
· 07-05 23:18
Another dead end
View OriginalReply0
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