DAOrayaki Reserach |RabbitHole: Earn Rewards by Using Decentralized Applications

DAOrayaki

7 min readJun 25, 2021

DAOrayaki DAO Research Grant：

Fund Address: 0xCd7da526f5C943126fa9E6f63b7774fA89E88d71

Voting Result：DAO Committee /7

Grant Amount：200 USD

Category: RabbitHole, Digital Economy, Rewards, DApps, On-chain Platform, Community Bootstrap, DAOs, Users Valuation

Contributor：Jones, 黑白BQ, DAOctor @Daorayaki

Chinese Version:https://daorayaki.org/rabbithole-shi-yong-qu-zhong-xin-hua-ying-yong-cheng-xu-zhuan-qu-jiang-li/

Launch time:

RabbitHole is still under building and not launched yet. It has been announced for the first time through the medium platform on 13th, May, 2020.

Brief Overview About RabbitHole:

RabbitHole is a platform to discover and earn crypto by using the latest crypto applications. We’re building one of largest decentralized participants in the crypto economy by training users how to perform jobs in the crypto economy. To earn crypto on RabbitHole, users must complete actions on different crypto applications.

I.Background:

Earlier in 2020, RabbitHole team set out on a journey to serve the needs of the growing ownership economy. They were observing how projects and protocols are finding their community owners and stewards.

In aggregate, crypto networks across the decentralized finance ecosystem are paying upwards of $100M a month to attract liquidity into their network. Often, only a few individuals are taking it upon themselves to contribute to these networks in larger roles. Meanwhile, forks of decentralized applications are accelerating. Retail users remain confused about the differences between projects with similar interfaces. As a result of the noise, a growing number of would-be network owners remain stuck on centralized exchanges, uncommitted about taking a journey down the proclaimed crypto rabbit hole. Relying on legacy media infrastructure, like Medium or Twitter, to teach retail users how to be owners is no longer an option. RabbitHole can no longer rely on unsustainable owner-acquisition rewards that dry up before helping projects find their long-term community stewards.

Leading to a pivotal moment as an ecosystem, where in order to attract users who will participate with RabbitHole in a new digital economy, RabbitHole needs a new set of crypto-native solutions for crypto-native products. From the other hand, the crypto ecosystem is at crossroads. In the past three years, we’ve spent our resources launching new protocols, new smart contracts, and new applications, and yet, mainstream adoption eludes us. With every new protocol or contract created, users face more noise when using crypto. If new users can’t filter through the noise, users won’t be using decentralized application. And if new users aren’t using decentralized applications. We’re stuck with the financial system we have today that is controlled by just a few.

Meanwhile, crypto networks are trying to figure out how to effectively decentralize and turn speculators into users. Recently, we’ve seen a resurgence in projects launching tokens for their ecosystems. Projects are quickly moving from “buying to own” to “participating to govern”, But in most cases, these projects suffer from the chicken and the egg problem: there must be users participating to govern.

II.Team members:

RabbitHole team has deep crypt-native roots, working at some of the leading consumer teams in web3 like Dapper Labs and the most well-known governance ecosystems like MakderDAO. The team also backed by some of the smartest founders in DeFi like Aave, Synthetix, PoolTogether, dydx, and more.

- Bryan Flynn — CEO & Co-Founder of RabbitHole, he is known as an editor for NFTY News, The Spectrum, and RabbitHole also. Before that, Bryan worked as a Product Marketing Manager at Dapper Labs and for Republic also. In addition, he is the Founder of BFC Labs. Bryan graduated from University of Scranton with a bachelor’s Degree in Entrepreneruship & E-commerce.

III.RabbitHole: DApps and rewards earning

On RabbitHole, users can acquire XP, level up, and earn rewards for interacting with well-known blockchain protocols. RabbitHole breaks down each decentralized application into gamified tasks so users can understand the main functions of the application while simultaneously bootstrapping the network.

The flaws that RabbitHole trying to solve:

1. There is no current incentive to bootstrap new networks and test functionality. On RabbitHole, crypto networks can reward users with unique tokens or rewards for interacting with their smart contracts and testnets.

2. It’s overwhelming for a new user to filter through the noise. RabbitHole curates tasks for each application to provide the user with a guide rail and understanding of how the network works by using the network, not by just watching videos.

3. Cryptonetworks are missing the “fun” factor. By introducing game-like elements on top of existing contracts, RabbitHole provides an easy on-boarding for new users experience the paradigm shift into the decentralized world while simultaneously learning how to use crypto-enabled applications.

How RabbitHole can help crypto projects grow:

Over DeFi summer, an explosion of money flow into smart contracts has been noticed, and a new wave of users scramble to learn how to participate in decentralized finance applications. Plus, profit-driven actors jumped from project to project, extracting protocol rewards along the ways. And when those rewards dried up, they moved on to the next opportunity.

To the point that crypto networks reached a crossroads. If the goal is to grow thousands of sustainable networks across the blockchain space, then projects must start targeting long-term contributors to their communities, instead of profit-driven actors looking to extract short-term value. At RabbitHole, an on-chain platform that makes it easy for projects to bootstrap their community — from discovery, to onboarding, to training, to scale. And from the perspective of new users, we’re building the best space to learn about new networks with 0–1 onboarding.

Importantly — everything on RabbitHole is done in a crypto-native way, built with other Web3 building blocks like The Graph, BrightID, and many others, like Ceramic and Gnosis Safe.

In summary:

- For users, RabbitHole provides the best place to find, use, and have ownership in the networks most tailored to an individual’s skill.

- For projects/protocols, RabbitHole provides the most important on-chain acquisition tool to find future users and stewards.

RabbitHole and project treasuries for tokens distribution:

RabbitHole is the first crypto-native paid acquisition channel for projects and protocols. For the first time, treasuries can spend money to acquire real users and participants for their projects to drive usage, all with built-in sybil-resistance provided by BrightID.

DeFi project treasuries are currently sitting on billions of dollars of funds with no real way to spend it besides attracting short-term speculators who are trying to make a quick profit. RabbitHole makes it easy for treasuries to spend money on growth to increase the number of holders and participants in a network. Furthermore, the RabbitHole team is also working on integrating built-in on-chain vesting to facilitate stronger retention and engagement across each network. When users earn project tokens for completing quests, the rewards will be streamed over a period of time defined by the community, as opposed to receiving the tokens up front. Having rewards with on-chain vesting is believed to be a stronger engagement over a longer duration.

RabbitHole: A Growth DAO to Bootstrap and Grow Networks:

RabbitHole’s north star is to decentralize into a DAO — with a mission to help networks grow users, contributors, and stewards over the life of their project. This is a complement to liquidity mining, which aims to grow the amount of capital in a smart contract.

A future where projects and protocols can target users with token distributions based on their transaction history can allo team to properly quantify the potential LTV of a user. From this foundation, projects can build more meaningful token distributions that don’t weigh every user the same. The more users that confirm proof on RabbitHole, the more that RabbitHole can determine which users are active and eligible who want to receive token distributions — and looking to contribute to a network.

According to RabbitHole team: they aim to make RabbitHole one of the largest delegates in governance across the networks it engages with. This is to foster a long-term relationship with the networks and create campaigns which foster long-term sustainability and increased participation across each network. They believe in a future in which “service DAOs” will be the major contributor of networks and participant of large networks, not individuals. And RabbitHole is the first of its kind: a service DAO to help create sustainable communities and match qualified participants with crypto networks.

IV.Contact Information:

- Official website: https://rabbithole.gg/

- Blog: https://www.notion.so/RabbitHole-9bf3d9a094974730bb2fae2b992ee1c9