🚨Ethereum Dencun Moves Closer to Mainnet

🚨Ethereum Dencun Moves Closer to Mainnet

In this edition we explore airdrop points systems, the Ethereum upgrade, OKX user compensation and more.

💥 Altcoins with Shoal Research: Airdrop Points Systems

What is it?

Airdrop Points Systems

Key Terms

Airdrop: A marketing strategy where small amounts of new cryptocurrencies are sent to a wallet, usually in return for an action or service. 

Sybil attack: In the context of airdrops, Sybil attack refers to the manipulation of the distribution mechanism by individuals aiming to extract significant monetary value without intending to use the product for its designed purpose.

What does it do?

Projects are implementing airdrop point systems to reward active users, providing real-time feedback on the merits or credits they've earned towards future airdrops. This approach gives users tangible indicators of their rewards, significantly boosting their motivation compared to more ambiguous token communications which typically give no indication on how to receive a larger airdrop claim.

What does it mean?

Projects are leveraging points as an incentive mechanism, encouraging users to engage with their products in exchange for airdrops (tokens). The introduction of a points system serves as a clear signal to users that their contributions and interactions will be rewarded, enhancing user engagement.

What does it represent to larger crypto sectors?

The adoption of points systems as a user attraction and retention tool is becoming increasingly prevalent across platforms. However, their widespread use has led to concerns about the rise in Sybil attacks against protocols. 

Why is it interesting?

The rapid adoption of points systems by various protocols highlights their effectiveness in attracting users. While they facilitate user acquisition, they also expose protocols to greater risks of Sybil attacks due to the ease with which airdrops can be farmed.

Important Connections

The concept of airdrop points systems is intrinsically linked to user engagement strategies, incentive mechanisms, and the broader challenges of maintaining protocol integrity amidst potential security threats like Sybil attacks.

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🔗 Further Steps in the Ethereum Dencun Upgrade

The highly anticipated Ethereum Dencun upgrade moved further towards its mainnet release last Wednesday as developers announced two additional test networks. Dencun will go live on Sepolia late January 30th and then on Holesky in February. If these tests run smoothly, developers say they will proceed to the mainnet release.

💰OKX Compensation

The cryptocurrency platform OKX pledged to compensate users after its native token crashed. Eligible users will receive compensation for losses deposited directly into their accounts. The token, OKB, dropped from 48 USDT to 25 USDT in three minutes last Tuesday. The price drop reportedly came from a liquidation cascade, which is a chain reaction of asset sales. OKX said they intend to prevent future issues by enhancing risk management protocols.

Solana to Improve Compliance

On Wednesday, Solana announced various token extensions to help support compliance protocols. The extensions are built into the core protocol and can be mixed and matched by users to better support transactions. According to a case study by Solana:

“extensions provide advanced configurable functionality, specifically designed to meet the needs of businesses with compliance obligations”.

💼 Monero Transactions used in Criminal Trial

Monero transactions are being used to support the prosecution of Julius Aleksanteri Kivimäki. Kivimäki faces charges in Finland for stealing psychotherapy patient records and attempting to extort patients. Authorities reportedly used Monero transactions and on-chain analytics to support their case. The trial is yet another example of how it is possible to leverage cryptocurrency to support investigation efforts.

📚 N+1 Recommendations 

The N+1 reading and media recommendations are sourced from our team of experts and offer weekly suggestions for learning more about blockchain, crypto, finance and technology.

This weeks recommendation: Crypto Theses 2024 by Messari

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