Research suggests that the Web3 blockchain market size was valued at around $1.86 billion in 2019 and is expected to reach $15.9 billion by 2031. Moreover, total investment in Web3 firms increased by 55% in Q1 2024.

In addition to this expansion, user engagement in Web3 soared by 124% in 2023. Data shows that nearly half of Web3 users are under the age of 34, value online interaction and seek greater control over their data.

Quarterly Web3 investment deal count. Source: QuickNode

Web3 marketing strategies prioritize online interaction to resonate with this young, dynamic audience that stands out in statistics. Methods such as social farming and airdrops are particularly popular. Social farming encourages engagement with the platform by allowing users to earn tokens by sharing, interacting with and participating in community events.

Airdrops, on the other hand, are distribution methods where tokens are sent to users’ wallets, often as a promotional strategy to encourage adoption and participation. In Web3 marketing, airdrops are an effective strategy to attract new users and potential investors.

The number of interactions in airdrop and social farming events, which are preferred by projects in the promotion phase, are among the basic success criteria in the Web3 world.

However, numbers can be deceiving in the vast expanse of the digital universe. A community may have millions of followers or likes, but the quality of interactions is the true indicator of its health and vitality. What matters is not how many people are in a room but how many are actually talking, sharing and adding value.

Even if the fake follower issue is overcome, real users can receive rewards by repeatedly sending the same messages about farming or airdrops without adding any value to the community. Web3 needs active contributors to grow, not passive followers who lose interest after receiving rewards.

Platforms aiming to rebuild this insincere environment and the sector’s bad image in the Web3 field focus on attracting users’ attention through active participation. In particular, innovative social finance (SocialFi) platforms that bring together the principles of social media and decentralized finance (DeFi) can easily detect the difference between active and passive users via artificial intelligence (AI).

Transforming Web3 engagement with AI-driven rewards

As a SocialFi platform addressing key challenges in user engagement and community authenticity, Chappyz aims to ensure that interactions are meaningful, rewards are deserved and communities are genuine by leveraging AI.

Unlike traditional platforms, Chappyz’s AI evaluates each user’s input and introduces a “Chat and Earn” feature that rewards quality participation and task completion, providing rewards proportional to participation value. The platform rewards real users who mention or like content rather than those who follow and leave. With leaderboards, Chappyz encourages a competitive and collaborative environment by showing users whether they deserve extra rewards and badges in real time.

Users can get rewards by chatting. Source: Chappyz

Chappyz enables users to filter discussions on popular social chat networks like Discord and Telegram, helping them find groups that reflect their interests. Additionally, Chappyz’s upcoming community analytics suite provides insights into community activity levels and insights, ensuring that vibrant groups get the spotlight they deserve.

One of the highlights of Chappyz is that, compared to costly traditional acquisition campaigns that convert very few users, it offers a tool to retain more users through effective reward distribution. For example, a user running a campaign on Galxe to attract new community members can use Chappyz to retain newcomers and encourage them to stay active.

Dynamic community management

Chappyz bridges the gap between traditional internet users and decentralized Web3 communities. The platform offers robust campaign management tools and advanced analytics for community managers and brands.

Chappyz also supports community engagement and growth through a plug-and-play protocol for analyzing member behavior on social networks. This tool provides deep insights into community dynamics, enabling projects to effectively tailor their engagement and growth initiatives.

Cointelegraph Accelerator participant Chappyz provides a comprehensive toolset for projects and community managers to manage operations within a single ecosystem. Projects can run and host campaigns, understand community dynamics through advanced analytics tools and provide investors with a clear overview of a project’s community health.

In Chappyz, engaged members become passionate advocates, fueling word-of-mouth. Source: Chappyz

Chappyz lets communities use nonfungible tokens (NFTs) to control access to campaigns, making participation exclusive to users who own NFTs from a specified collection. With Chappyz, communities can ensure their campaigns reward genuine supporters by requiring users to hold certain tokens or NFTs to join the campaigns.

In collaboration with Unitaskr, an initiative connecting students with households and businesses, Chappyz plans to introduce over half a million students to Web3 communities. The platform lowers barriers to entry with features like account abstraction and gasless transactions, simplifying the user experience and removing the need for complex sign-up procedures and upfront transaction fees.

Growing user base and future prospects

Chappyz has secured over 50 community partnerships and boasts over 1,100 daily active users. Its native token, CHAPZ, is listed on exchanges like PancakeSwap and Uniswap, offering rewards and access to premium features and analytics.

With the natural language processing feature, version 3 analyzes message content better. Source: Chappyz

With its version 3 release in Q2June 2024, Chappyz wants to continue to innovate with advanced natural language processing (NLP) and machine learning (ML) techniques. The platform plans to largely revamp its AI engine to provide anti-spam and plagiarism detection. With the advanced AI engine, Chappyz wants to help projects in a wide variety of industries to effectively drive their brand narrative, ensuring authenticity and relevance.

Utilizing the power of large language models (LLMs), the new engine will decipher complex user intents and contextual nuances, enabling Chappyz to offer accuracy in user interaction and automated content moderation. This improvement ensures that communications within platforms are both authentic and relevant. Leveraging pattern recognition algorithms, Chappyz's AI will actively monitor and mitigate unwanted behaviors and content. This system will identify subtle signs of spam, phishing attempts, or anomalous activities that could signify security threats, thereby safeguarding user interactions on the platform.

With the V3 launch of Chappyz, its analytical capabilities are also taking a leap forward as projects will be able to better understand their communities from a new analytical dashboard integrated within the product. Brands can, with this upcoming analytics tool’s addition, gain additional insights into user behavior and better understand community sentiment.

As complex AI-powered models continue to integrate into Web3 technologies, the future of decentralized communities looks promising. Platforms like Chappyz focus on meaningful and authentic interactions and are set to redefine how users and projects connect. With contributions from NLP in addition to AI, the next decade could lead to a more robust and vibrant Web3 ecosystem.

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