UXLINK token model and airdrop rules, the traffic king of the social track

Author: Yali

In the post-Friend.tech era, this article explains the token model and airdrop rules of the acquaintance social application UXLINK

I. UXLINK product introduction and valuation calculation

Since the beginning of this year, with DEGEN of the Farcaster ecosystem leading the way, SocialFi has re-entered the stage of attention. On April 10, Friend.tech imitation Tomo announced the completion of a $3.5 million seed round of financing led by Polychain. On May 3, Friend.tech announced the launch of version v2 and airdropped the native token FRIEND. As an important track that is expected to break through the circle like games and IP, new Web3 social products and new models are worthy of attention and research.

UXLINK is a new SocialFi infrastructure project built on Telegram and focusing on social networking among acquaintances. Since its release in April 2023, the number of users has exceeded 5 million, the number of groups is nearly 100,000, and the daily active users on the chain exceed 200,000. UXLINK completed a new round of financing led by OKX in March this year, with a total financing of more than US$9 million.

The following table summarizes the data of the currently well-known Web3 social projects, showing that UXLINK has reached the level of top social projects in terms of total number of users, user activity, Twitter followers, etc.

Table data as of May 8

Further introduce indicators for analysis. The DAU/MAU ratio is often used to measure product user stickiness. By comparison, it can be found that the current user stickiness of the Farcaster ecosystem is relatively good. The FDV/MAU ratio can be used to value application projects such as games and social networking that value user activity. Taking the MAU/FDV of Friend.tech and CyberConnect as a reference, it is expected that the valuation range of UXLINK will reach the level of 10 billion. This is of course an extremely optimistic market value estimation, and the user expansion rate after the product enters the mature stage needs to be considered.

If a more traditional price-to-sales ratio algorithm (market value/revenue) is adopted, taking the price-to-sales ratio of Friend.tech as a reference, the valuation of UXLINK is about 357M. Considering that UXLINK, as a new generation of social application, has made many improvements to the previous two generations of social products, the total number of users and active user base are much larger than Friend.tech, and the current attention to Web3 social narratives has increased significantly. In addition, the initial circulation is small, and the FDV of UXLINK after its launch is likely to be 1-1.5 billion, corresponding to a token price of 1-1.5U.

2. Interpretation of the dual token model

According to the latest white paper information, UXLINK will adopt a dual token model, including a utility token ($UXUY points) and a governance token ($UXLINK).

The use of a dual token model can effectively separate usage and governance rights, helping to balance the long-term development and immediate utility of the ecosystem.

1. Utility Token UXUY Points

• Purpose:Reward system for community and ecological development

• Generation:Based on the Proof of Link (POL) mechanism, no pre-minting. Users obtain tokens by inviting others and contributing to the ecosystem.

• Decreasing Formula:Rewards decrease over time, similar to Bitcoin's mining logic, based on time, network connections, and total network size. Once the network reaches 30 million, no new UXUY tokens will be generated. By then, the value formed by the network effect can support the continued expansion of users and nodes.

• Use Case: Pay Gas

2. Governance Token UXLINK

• Purpose: Used for governance and to gain benefits from UXLINK projects and products

• Supply: Limited to 1 billion tokens

• Distribution: Community 65% ​​(40% for users + 25% for builders and partners), 21.25% for private sales, 8.75% for the team, 5% for reserves

• Release Schedule (starting point is the listing time, not TGE):

1. Community: Monthly airdrops to active users, no lock-up period

2. Partners: 3-month lock-up period + 12.5% ​​release per quarter within 8 quarters

3. Team: 6-month lock-up period + 12.5% ​​release per quarter within 8 quarters

• Initial circulation:Assuming the treasury (5%) is released at listing, the initial circulation is approximately 10% of the maximum supply; otherwise it is 5% of the maximum supply.

2. Source of income

Different from Web2's acquaintance social applications, users (rather than UXLINK) own the data on the network. The source of income for the UXLINK ecosystem is mainly composed of four parts:

• A certain percentage of fees (called gas) paid by users for transferring data. If Dapp generates income within the network, it also needs to pay a certain percentage of fees

• Dapps related to financial topics are charged a certain percentage of commissions

• Service fees paid by partners who want to use UXLINK to acquire customers

• Revenue from the sale of NFTs or other advanced tools

Revenue may include UXLINK and other tokens, which will be allocated to community development and token management.

III. Introduction to the first phase of airdrop rules

On May 3, UXLINK announced the launch of its first airdrop event and issued INUXLINK WE TRUST series NFT as airdrop vouchers. It is expected that this airdrop will cover 10% of active users. Considering that the total number of users has exceeded 5 million, this will be a large-scale airdrop. The following will introduce the airdrop rules and how to participate.

1. Airdrop standards

• Active community contribution (number of friend invitations, UXUY points balance)

• Active on-chain contract interaction

• Wallet balance

2. NFT rights

UXLINK will distribute 7 sets of NFTs in 4 series as certificates for participating in the airdrop plan based on the airdrop standards met by users, corresponding to different rights and interests and the number of $UXLINK tokens airdropped.

NFT holders’ rights include: 100% of the first season airdrops of UXLINK native tokens; priority participation in the second and third season airdrops of UXLINK; and community governance voting rights.

In addition, NFT is the permanent identity of UXLINK users and will be used for layered operations and future airdrop rights (including $UXLINK airdrops and token airdrops of other ecosystems/cooperation projects).

From the current progress of Mint, more than 80,000 people have obtained airdrop qualifications, and about 3,200 people have obtained the first two levels of NFTs.

3. How to obtain NFT/air investment qualifications

• Get as many UXUY points as possible through on-chain interactions, friend invitations, connecting wallets, etc.

1. Odyssey link:https://dapp.uxlink.io/quest

2. Follow new activities released on the official Twitter:https://twitter.com/UXLINKofficial

• Prepare a small amount of Gas fee

• As a representative of the third-generation Web3 social products, UXLINK's valuation is supported by data. Its token design reflects the consideration of ecological health and sustainability. The design of the airdrop rules also takes into account fairness and inclusiveness. We have reason to expect that Web3 social will be able to achieve the beautiful vision of decentralization and data sovereignty in the near future.

  References

  • https://dapp.UXLINK.io/

  • https://dune.com/UXLINK/UXLINK-data

  • ehttps://tokenterminal.com/terminal/projects/friend.tech

  • https://dune.com/msilb7/friendtech-on-base-activity

  • https://dune.com/pixelhack/farcaster

  • https://dune.com/annieag/farcaster-user-adoption-kpi

  • https://dune.com/cyberconnecthq/cyberconnect-link3-metrics

  • https://dune.com/lens/lens-protocol

  • https://mp.weixin.qq.com/s/pE8jv_VShdRro2eh0LCtSo

  • https://docs.uxlink.io/uxuy-labs-api/whitepaper/white-paper