Leading the 1st Pack in Social Traffic: UXLINK Token Model and Airdrop Guidelines

In the era following Friend.tech, the rise of SocialFi has sparked fresh interest in social networking platforms. On April 10th, Friend.tech, a platform reminiscent of Tomo, announced the successful closure of a $3.5 million seed round led by Polychain. Then, on May 3rd, it unveiled its v2 version alongside the airdrop of its native token, FRIEND. As Web3 social products and models emerge as a vital arena, reminiscent of gaming and intellectual property (IP), they warrant closer scrutiny and study.

Overview and Valuation Estimation

UXLINK, a new SocialFi infrastructure project developed on Telegram, is dedicated to acquaintance-based social networking. Since its inception in April 2023, it has garnered over 5 million users, facilitated nearly 100,000 groups, and boasts over 200,000 daily active users. In March of the current year, UXLINK concluded a fresh funding round spearheaded by OKX, amassing a total funding of over $9 million.

The provided table showcases data from prominent Web3 social projects, illustrating UXLINK’s comparable metrics in terms of total users, user engagement, Twitter followers, and more.

Table data as of May 8

Further analysis using metrics like DAU/MAU and FDV/MAU ratios reveals UXLINK’s potential valuation. Given its enhancements over prior social products, an optimistic valuation in the billions seems plausible, with a probable FDV ranging between $1-1.5 billion and corresponding token prices of 1-1.5U.

Dual-Token Model Overview

As per the latest whitepaper, UXLINK will adopt a dual-token model comprising a utility token (UXUY points) and a governance token (UXLINK). This bifurcation facilitates an equilibrium within the ecosystem, catering to both utility and governance needs.

1. UXUY Points:

• Purpose: Reward system for community and ecosystem development.
• Generation: Based on Proof of Linkage (POL) mechanism, with no pre-minting. Users earn tokens through referrals and ecosystem contributions.
• Decay Formula: Rewards decrease over time, akin to Bitcoin mining logic.
• Use Case: Paying Gas fees.

2. UXLINK:

• Purpose: Governance and benefits from UXLINK project and product.
• Supply: Limited to 1 billion tokens.
• Allocation: Community 65% (users 40% + builders and partners 25%), private sale 21.25%, team 8.75%, reserve 5%.
• Release Schedule (starting from listing date, not TGE):
  • Community: Monthly airdrop to active users, with no lock-up period.
  • Partners: 3-month lock-up period + quarterly release of 12.5% within 8 quarters.
  • Team: 6-month lock-up period + quarterly release of 12.5% within 8 quarters.

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

3. Revenue Sources

Unlike Web2’s familiar social networking applications, where users (rather than UXLINK) own their data on the web, the revenue streams of the UXLINK ecosystem primarily consist of four components:

• A certain percentage of fees (referred to as gas) paid by users for data transfers. If a Dapp generates income within the network, it also needs to pay a portion of fees.
• Dapps related to financial themes levy a certain percentage of commissions.
• Service fees paid by partners who seek to acquire customers through UXLINK.
• Revenue from the sale of NFTs or other advanced tools.
• Income may include UXLINK and other tokens, which will be allocated to community development and token management.

Phase One Airdrop Rules

UXLINK announced its first airdrop on May 3rd, distributing “IN UXLINK WE TRUST” NFT series as airdrop vouchers. It anticipates the participation of roughly 10% of its active user base. The criteria for the airdrop encompass community engagement, on-chain activities, wallet holdings, and NFT ownership. Four distinct series, comprising a total of seven sets of NFTs, will be allocated based on user eligibility, each offering different perks and quantities of $UXLINK tokens.

1. Airdrop Criteria

• Active Community Contributions (such as the number of friend invitations and UXUY Points balance)
• Active On-Chain Contract Interactions
• Wallet Balance

2. NFT Ownership

UXLINK will distribute seven sets of NFTs across four series to users who meet the airdrop criteria.

These NFTs will serve as evidence of participation in the airdrop program and grant various privileges, including access to:

• 100% eligibility for the first season airdrop of UXLINK native tokens
• Priority inclusion in subsequent season airdrops of UXLINK tokens
• Voting rights within the community’s governance framework

Moreover, these NFTs will serve as permanent identifiers for UXLINK users, facilitating tiered operations and unlocking future airdrop benefits, including $UXLINK token distributions and token airdrops from external ecosystems or partnerships.

At present, over 80,000 individuals have met the eligibility criteria for the airdrop, with approximately 3,200 individuals having received the initial two-tier NFTs.

3. To qualify for NFT/airdrop eligibility with UXLINK, users should follow these steps:

• Accumulate UXUY Points:
  • Engage in on-chain interactions, invite friends, and connect your wallet to accumulate UXUY points.
  • Participate in the Odyssey Quest: Join the Odyssey Quest via the provided link to further engage with the platform.
  • Stay Informed: Stay updated on new activities and announcements by following UXLINK’s official Twitter account.
• Prepare Gas Fees: Ensure you have an amount of gas fees ready for transactions within the platform.
• Mint Airdrop Certificates: Visit the provided link to mint your airdrop certificates and complete the necessary steps for eligibility: https://dapp.uxlink.io/uxnft.

In conclusion, UXLINK stands as a beacon among third-generation Web3 social products, its valuation grounded in empirical evidence. Through its token design and airdrop rules, UXLINK demonstrates a commitment to nurturing a healthy and sustainable ecosystem, while prioritizing fairness and inclusivity. With such principles guiding its trajectory, UXLINK embodies the promise of Web3 social platforms, paving the way towards decentralization and empowering individuals with data sovereignty. As we look ahead, the future appears bright for the evolution of Web3, driven by platforms like UXLINK that embody these core values.

References:

• https://dapp.UXLINK.io/
• https://dune.com/UXLINK/UXLINK-data
• https://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_VShdRro2eh0LCtSg

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