A successful launch
It's the first week of October and we've successfully launched the protocol on mainnet. Parachain auctions were too expensive, so we decided to go with an independent PoA Substrate chain for now.
We've been mostly consistent in delivering against the roadmap, and our current feature set is highly geared towards incentivized data provisioning. Our marketing efforts have been priming the community for launch, and business development succeeded in securing a few launch partners with a collective user base of an estimated 10M people. A few centralized exchanges have listed us in the past few months.
Marketing has been hard at work communicating this progress and news, and FCL has seen a bumpy rise to $5. This means that this month we'll have almost $12M in FCL to distribute as incentives — and if the price doesn't move, this will be true for several months to come. Our integration partners are excited and will soon be making bank.
Our first SDK for browser extension integrators turned out a little clunkier than we expected, because of new restrictions in Chrome's extension API. We will need to find a good workaround if we expect the number of integrators to grow organically, but working directly with our partner integrators went well and all were ready at launch. The SDK helps with setting up a data store, collecting user data with consent, and making it available for querying.
We decided to use identity verification as the initial mechanism to encourage data accuracy. In order to qualify for incentives, users providing data must undergo identity verification with Fractal and register the respective credential on chain. Frausters are less likely to reveal their identity, and we're expecting this to discourage spam. In order to enhance this mechanism and further support the FCL price, staking FCL is also a precondition for incentive eligibility.
Fractal ID, expecting a barrage of new onboardings, has improved its conversion and speed by finally tackling some old bugs, and also expanding and further automating the verification process.
Permissionless DeFi protocols in Ethereum have kept their pace and FCL can now be used as collateral in several of them. Because of this utility, we've decided against a forced migration of FCL to our Substrate chain, and instead use a 1:1 token bridge in order for tokens to flow freely between the different chains. We didn't manage to build a good way to migrate credentials yet, so our Substrate nodes have to communicate with Ethereum to make sure users with old credentials aren't ignored.
We've been helping eyeo, our flagship partner, integrate the Protocol intro Crumbs. Users can now opt in to have their browsing, intent and purchase history locally stored and accessible by data purchasers. Crumbs, also in a quest for adoption, is incentivizing users to do so by running a weekly lottery among all their users: half of accrued incentives that week go to the winner. Since Crumbs is expecting to reap 10% of all incentives based off their user numbers, this tempting $600k ticket is helping their user base grow by an order of magnitude above their expectations.
By December, the Protocol's user base has expanded to 10M, according to the number of issued identity credentials. We count over 10T data points — and we've distributed over $25M to our partners, who can't believe their luck. News of a successful launch, combined with a growing amount of staked FCL, moves the price to $10. In January, we expect to distribute over $20M in incentives.
We start seeing a surge in integrations, as word spreads about this revenue opportunity, and our updated SDK is making it easier for more and more folks to integrate us without issues. Our prospective demand partners, skeptical at first, start showing real interest. Our data marketplace, empty at first, now shows more data than they can afford to ignore. We close the first deals, they start exploring and buying data from the marketplace, and adding real revenue on top of incentives.
Last modified 7mo ago
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