Most protocols and blockchain networks rely on airdrops to attract users, but this often results in a short-term activity spike from airdrop hunters, rather than genuine, sustainable growth. The challenge of acquiring loyal users isn’t unique to Web3—it’s seen across Web2 and traditional markets. The solution? On-chain customer clubs. By offering ongoing incentives, we can encourage consistent use of the network without massive, one-time payouts. This post explores how to build a sustainable strategy to acquire and retain loyal users in the crypto space.
Airdrops were once a popular way to onboard users in Web3, but they've now become more of a short-term boost than a sustainable strategy. The rise of airdrop hunters means most users rarely stick around for long. Even successful cases like Not-Coin have limitations, and failures like zkSync highlight the core issues:
Networks (Arbitrum, Optimism, zkSync) and protocols (Uniswap, Aave, Compound) are products competing for users and attention, much like traditional markets. The key to winning? On-chain customer clubs.On-chain customer clubs are the key to winning. These ongoing, measurable incentive systems reward loyal users based on their actions, offering consistent benefits rather than one-time rewards. Just like customer clubs in supermarkets or online services, on-chain clubs create long-term growth by giving back to those who actively use and support the network or protocol.
Starbucks Rewards is a top-notch customer club, using tiered incentives like free drinks and personalized perks to drive loyalty. It collects data on user habits, tailoring offers and creating a seamless experience. Web3 networks can mirror this strategy. By rewarding regular users with points and punishing bad actors, they can tier services—lower fees, prioritized transactions, or gate to specific features. Ongoing rewards encourage asset retention, reduce cashing out for hopes of higher rewards, and keep users within the ecosystem, deterring them from exploring competitors.
Many blockchains compete for users, and to the average user, they often seem interchangeable. On-chain customer clubs can change this by offering rewards for specific actions, like prioritizing transactions or reducing fees, creating an incentive for users to choose and stick with a particular chain.
With DEXs like Uniswap, SushiSwap, and 1inch offering similar services, customer clubs can differentiate them. Reward users based on transaction volume, and offer perks like lower fees or access to exclusive liquidity pools. If you're already swapping, why not use a platform that benefits you the most?
For on-chain lending platforms, reward loyal borrowers based on loan amounts, successful repayments, and low liquidation risk. Top-tier users can enjoy better LTVs, lower interest rates, and access to special reserve pools.