Gro NFTs for Community Engagement: Brainstorming
I’ll separate my post into four main areas:
- A brief overview of how some projects have used NFTs for community engagement
- Two in-depth case studies of relevant NFT community programs and applicability to Gro
- A discussion of a possible thematic approach to community incentive programs
- Other thoughts and final questions to consider
tl;dr - Brainstorming ideas for NFTs as community engagement tools. For NFTs, I would pick two methods as having the most potential for community engagement: NFTs as rewards for product usage and NFTs as rewards for donating to a project that is Gro-ing trees or Gro-ing good things in the real world.
Part 1 - How some projects have used NFTs for community engagement
A brief overview of some other projects that have used NFTs as rewards for community engagement:
-NFTs for largest depositors (Orca Finance)
-NFTs for beta testers (many projects)
-NFTs as gifts for fan art contests (WardenSwap - 1195 applicants, 170 winners for first round)
-NFTs as lottery-style rewards for social task completion by token holders (WardenSwap - https://gleam.io/hDOUd/wardenswap-x-ecio-nft-mystery-airdropcampaign)
-Commissioning artists to create & sell project-themed NFTs that users can bid for in auctions. NFT holders will get “future utility and benefits”. (Saddle Finance - https://twitter.com/saddlefinance/status/1448725560515973256?s=20)
-Alchemist Crucible - NFTs that function like smart wallets and allow you to stake in non-custodial rewards programs
-NFTs for “quests” (Zapper, Rabbithole)
- This “quest” concept could be integrated with Gro via vesting bonus claims - users receive Gro XP every time they claim (via gasless transaction signing) & could save up their XP to purchase (or be rewarded with) the ability to “craft” a limited number of NFTs.
Part 2 - Two case studies of relevant NFT community programs and applicability to Gro
Case study #1: Nexus Mutual
Notes from this DeFi Dad interview: DeFi Talks with DeFi Dad - How to Reward Your Community with NFTs - YouTube
-A community manager (@Nedict0x) received a grant from the Nexus mutual community grants fund to start this community project.
-@Nedict0x commissioned an artist (erenarik.com) to create NFTs.
-Users rewarded with claimable NFTs for completing actions: Shield mining, buying coverage, staking, etc. This allows users to participate in different ways.
-Each NFT symbolizes a member’s contribution to the protocol. They have small details reflecting parts of the protocol or inside jokes/memes in the community.
-There are two tiers of NFTs based on the level of involvement: Static (for less involvement) and animated (for more involvement).
-NFTs launched on https://galaxy.eco/
-Nexus Mutual’s NFTs can be viewed at galaxy.eco/nexusmutual/campaign/315
-First 300 minters were allowed to claim a gas refund
-Timeline: 3-4 months
-Link to an article about the NFT launch and details about each NFT: Nexus Mutant lands on Galaxy to start the Mutant journey | by Project Galaxy | Oct, 2021 | Medium
Pros: Rewarding and incentivizing community members for genuine involvement
Cons: Gas fees, no other uses for these NFTs were specified by Nexus Mutual
Applicability to Gro:
A community grant proposal could be made for someone to take charge of this NFT community Gro-wth program.
NFTs could be rewarded to users based on their involvement.
Example: Using Vault, using PWRD, earning GRO rewards, claiming vesting bonuses, participation in governance, etc.
-Tiers could be decided based on length of time, size of position, frequency of claims, frequency of voting…
-Gro would have to decide if these NFTs would only be for viewing/flexing, or if other utility might be attached to them.
Case Study #2: The Crazy Crows Chess Club
Notes from this Medium article: Cross-Chain Breeding — The Crazy Crows Chess Club | by Kingmakereth | Sep, 2021 | Medium
-This started out as an NFT project built on Ethereum. 8,181 “Generation 0” Crow NFTs were sold to buyers. However, the NFTs minted have specific utilities:
- Free Gold membership to chess.com
- Monthly profit-sharing via the Founder’s Token (on Polygon)
- Burning mechanism - users can sacrifice two “Generation 0” NFTs to be burned in exchange for a new randomized “Generation 1” NFT with rare traits, but that lacks these utilities (On Polygon, using Chainlink for data & randomization)
- DeFi farming component - users holding two Generation 0 NFTs can “produce an egg” which can be staked in a yield farm to earn passive income. The longer you stake, the higher the chances a rare NFT will be hatched from it in the future. Gravity Finance and Chainlink VRF were used for this https://gravityfinance.io/. There are checks to make sure people don’t spam the market with eggs, and specific times of year when the cool down period is shortened. (On Polygon)
- Access to secret channels for tournaments, treasure hunts, and airdrops - While eggs mature, users can participate in special events which will assign specific traits to the egg. For example, an event might be an IDO or other community event put on by Crazy Crow’s Chess Club or its partners. Once the egg is ready to hatch, users can “hatch” theirs while the smart contract burns the egg and mints a new crow with randomly assigned traits, and any extra special traits that the owner participated in.
-This project was built on Ethereum but uses Polygon to avoid the high gas fees on Ethereum’s mainnet. Details of the cross-chain smart contracts can be found in the Medium article.
Pros: NFTs that have a variety of practical utilities, have the ability to transform, and give a sense of being part of a privileged community.
Cons: Game theory regarding burning and farming might inadvertently lead to a competitive community atmosphere, may not last through a bear market with reduced levels of passive income.
Applicability to Gro:
-These NFTs could either be rewarded to users based on the involvement (as in case study #1), or sold with profits going towards artists/the treasury.
-NFTs for Gro could be given specific utilities. Examples for each of the utilities below.
- Monthly profit-sharing - boosted profit sharing from withdrawal fees or vesting claims.
- Burning mechanism - users could agree to extend the locked duration of their GRO token rewards in exchange for rarer NFTs. Thematically, this could be envisioned as a “Gro seed vault”. A burning mechanism could also be used to simply burn NFTs for GRO rewards, gas rebates, or partner project benefits. Or, simply burning a certain amount of GRO tokens for NFT rewards. That could be envisioned as “controlled burning” to maintain the health of the Gro forest.
- Farming - A special staking pool could be created for holders of multiple NFTs. Incentives could be based on types of NFTs held + length of time GRO rewards have been locked for. Thematically, this could be envisioned as planting a Gro seedling. The longer it is staked for, the larger and more ornate it will become.
- Events & access to secret channels - Users who participate in selected Gro events, such as AMAs, music socials, contests, partner events, etc. will allow users to assign traits to their Gro seedlings (could be fruit, special leaves, animals, objects, characters, etc.)
Part 3 - A possible thematic approach: Gro + Environmental Theme
I already explored some possible branding-related uses of the environmental theme in Case Study #2. However, NFTs for “doing good” in the real world could certainly align with Gro Protocol in a conceptual manner (e.g "Gro-ing trees or “Gro-ing real-world communities via philanthropy”) and provide a two-pronged incentive for community members: “Doing good” to obtain NFTs and possibly other Gro-related rewards, while also having positive real-world impacts.
Examples of some relevant projects in this environmental space below:
-Leyline - NFTs minted as a reward for philanthropic donations & exercise incentives. https://leyline.gg/.
-TreeDeFi - NFTs backed by real-world trees. They’re only on BSC though. Treedefi - The Sustainable yield farm
-Binance Charity’s “Tree Millions” - aims to plant real-world trees and rewards users who donate with an NFT (https://www.binance.charity/tree-planting)
-KlimaDAO - facilitating carbon removal projects. The (
,
) meme is popular over there.
-Woodies NFT - has donated ~73 ETH for planting trees in sub-saharan Africa. Possible partnership or artist collab idea. Historic NFT Donation To Plant 837,000+ Trees
-Nonprofits that accept crypto donations are listed on thegivingblock.com. For example, here is one called the FTPF, Fruit Tree Planting Foundation. Gro NFTs given as rewards for donations to select nonprofits is an idea to consider. Donate Bitcoin to Fruit Tree Planting Foundation | The Giving Block
The risk with many of the above suggestions is the climate impact that using NFTs themselves may have and how to address those concerns, particularly if going with the theme of NFTs for “doing good”. However, at this point, I think it unlikely that Eth mainnet would be the best place to mint these NFTs on due to the burden of gas fees for retail users.
Part 4 - Other thoughts and final questions to consider
-The PixelMe app profile pics with the purple background are quite popular in the Gro community. Is there a way to reward Gro users with custom NFT minting via purple-ized/Gro-ified NFTs? E.g., users are allowed to create one semi-custom Gro NFT using a picture of their choice that will be put through a purple pixel filter. Not sure if this functionality exists in an NFT platform yet, but could have potential. Users receiving these custom-built NFTs would feel a sense of comradery in the community and it would certainly pique the interest of other users online who notice people’s new Gro-ified NFT profile pics.
-POAPs are also an option to consider, such as when used as rewards for attending events or taking quizzes. That said, I don’t think they’d be a magic bullet for bootstrapping community growth at this point.
-Any major community incentives, particularly ones involving changes to vesting periods or GRO tokens, would need to be passed via governance proposals at some point.
Final questions
-Gas fees for NFTs on Ethereum - perhaps launching on AVAX or another L1/L2 (if Gro has plans to head anywhere else in the future) would make more sense?
-Many of these ideas could increase community engagement, but it’s important to consider what the specific expected outcomes of them are. For example, is the primary outcome to increase Gro Protocl TVL? Or, is it to increase customer interaction and spread the word about Gro, with the expectation that it will trickle down into increased TVL eventually as a result?
-In every example given here, we’d have to consider how to prevent people from gaming the system.
-Partnerships - Is there any way partner projects could be included or incentivized jointly in these community initiatives?
-Timing - If it takes 3+ months for some of these concepts to reach fruition, is that a reasonable goal for Gro Protocol and the community? What happens if the NFTs are launched during a bear market or after a bad PR event, or does this matter at all? Will people still care about NFTs a year from now?
-The OG Program has already been successful in incentivizing genuine participation from community members. So, what distinguishes NFT events from OGs, and how can we ensure that both groups feel like they have unique value?
Keep in mind that everything in this post is brainstormed ideas and far from being ready to implement in any way. Also, while NFTs play a part in many of these suggestions, they aren’t necessarily essential to implementing similar community engagement initiatives.
If you’ve made it this far, thanks for reading and feel free to share any feedback!