Tokenguard proposes to build a public good wallet segmentation & conversion growth tool, filling a gap in the current growth landscape. Polkadot Community channeled more than 3M $DOT to different user acquisition activities for Parachains, Wallets and DeFi but until now there was no tool to measure & optimize these expenses so that they actually drove the TVL and $DOT value up.

While tools like Dune & Dappradar provide on-chain protocol analysis, they primarily concentrate on raw data rather than optimizing user conversion. With cross-protocol tracking and CRM-like features, Tokenguard allows discovering the most valuable user segments, their conversions & churn paths within seconds, making it possible for DeFi, Wallets and Parachains to engage users more to increase revenue and maximize TVL.

Full proposal available here

Having experience in building Ink! tools, Tokenguard team would love to further assist Polkadot Builders by supporting native technologies of the ecosystem. Tokenguard App is and will be free to use for all builders & users in the Polkadot Community. This proposal supports:

• Ink! Smart Contracts - flagship Substrate technology for building DeFi & dApps (Check AZero.ID User Insights)
• XCM - Polkadot native cross-consensus messaging
• Substrate Pallets - Polkadot native solution for extending parachains functionality
• Wallet Apps - integration with Polkadot native wallet apps by API
• EVM Smart Contracts - used by Moonbeam & Astar (Check StellaSwap User Insights)

Tokenguard tool is and will be based only on publicly available on-chain data. We respect user privacy and don't collect any off-chain user data.

[Edit 05/07/2024]

After discussion with most important Ecosystem Stakeholders, besides indexing relay & parachains (Polkadot, Kusama, Hydration, Moonbeam, Astar, Acala), Tokenguard team decided to add limited support to track most powerful DeFi wallets and their inflow (through bridges & wormholes) from:

• Ethereum,
• Binance Smart Chain,
• Arbitrum One,
• Avalanche

This will allow DeFi & Tokenguard teams run off & on-chain user acquisition campaigns targeted at the most valuable DeFi wallets in other web3 ecosystems and drive them into $DOT ecosystem. Tracking their conversions inside of Polkadot ecosystem will allow to focus user acquisition budgets on campaigns with highest LTV to CAC ratio.

While the proposal is live, we received official support from eg.:

• Bifrost: https://twitter.com/Bifrost/status/1814314347625349225
• Subwallet: https://polkadot.polkassembly.io/referenda/922#zQyxchIlTuq7x4vQ1EVk
• StellaSwap: https://polkadot.polkassembly.io/referenda/922#duSUCigyRRyDCQ9iRTEu
• Beamex & Beamswap: https://x.com/Beamswapio/status/1809880996088586573
• Polkadot Insider: https://x.com/PolkadotInsider/status/1808351447459025123

Direct requests to build this tool that our team received from other $DOT teams are available upon request on Element: kamilgorski:matrix.org

Problem

❌ Improving $DOT-financed user acquisition: Over 3M $DOT has been spent on user acquisition for DeFi, Wallets & dApps without effective tools to analyze user conversions, retention and TVL inflow.

❌ Minimizing wallet churn: With widespread use of XCM builders of Parachains and DeFi lack insights into sources of user inflow and directions of churn to improve their wallet retention.

❌ Wallet apps can't manage their users: Wallet App builders don't have a tool to understand their most engaging features and market share. They don't know if new app features are actively used and whether their users churned by using a different wallet.

❌ Inability to track on-chain conversions: DeFi, dApp and Wallet builders can't understand which features are driving their applications' TVL and revenue up.

Solution

👥 Most Valuable Wallet Segments: Understand user behavior within specific parachains, dApps, wallets and DeFi protocols by segmenting wallets based on on-chain activity, usage of other on-chain services, protocol activity timeline, wallet balance, and tokens owned.

📈 Wallet Conversions Tracking: Enable segmentation based on on-chain conversions within a specific dApp, DeFi protocol, or parachain, allowing customization of conversion types based on smart contracts, event types, timestamps, and conversion values.

👩‍💻 Wallet CRM: Allow Wallet, DeFi & dApp builders create a subsegment of their users and discover most popular features and dApps to build partnerships with. They can improve their marketing strategies by measuring conversions delivered by different subsegments.

🔀 Cross-chain $DOT User Flow: Track $DOT user inflow and outflow from the ecosystem, analyze cross-parachain activity, determine user interests in XCM, CeXes and bridges, and identify attractive parachains for users.

Benefits for the Ecosystem

Wallet Apps

1. Growing user engagement by identifying sources of wallets with highest retention
2. Helping $DOT increase its on-chain 
activity
3. Understanding what features are used
 most commonly and which ones need 
improvement

Use Case: CRM for Wallet Builders to increase the usage of their Wallet apps by identifying the most popular features among the community (Proposals: Nova #1, Nova #2, Talisman #1, Talisman #2, SubWallet, Telenova). Wallet Builders proposals prioritize the development and delivery of innovative features, broadening application support across the Polkadot ecosystem, and enhancing UI/UX design. Understanding the most used features by specific Wallet App in comparison to other Apps is crucial to build competitive advantage.

DeFi

1. Understand which users segments 
drive TVL growth to build incentivization strategies
2. Measure flow of users between DeFi and most common churn paths
3. Increase wallet retention from
 $DOT financed campaigns

Use case: Attracting new users through Hydration incentives programs (Hydration #1, Hydration #2) funded by the Treasury and improving its effectiveness by understanding user segments behavior. The Polkadot Hydration Campaign aims to attract liquidity and attention to the Polkadot ecosystem. By providing liquidity to DOT and native tokens with 2 million DOT, the campaign seeks to achieve higher TVL and facilitate more efficient trading for a variety of native tokens.

Relay & parachains

1. Increase efficiency of $DOT user acquisition
 campaigns by tracking the source of
 most converting wallets
2. Grow the share of staking users
3. Identify on-chain sources of users and inflow from parachains

Use case: Increase the effectiveness of on-chain campaigns funded by the Treasury (Holder-targeted Audience Growth w/ Addressable.io, Pinkdrop) by identifying the on-chain activities that bring in the most valuable users and drive conversions. These initiatives focus on attracting new audiences, retaining current users, and amplifying the ecosystem's branding. Key activities include acquiring new audiences with targeted ads or tokens available in the $DOT ecosystem.

dApps

1. Grow the most active user segment
 with highly targeted rewarding 
campaigns
2. Improve dApp features and common
 conversion blockers
3. Minimize users churning to other dApps or set up partnerships with them

Use case: Helping increase TVL and Volume of StellaSwap funded by Treasury by understanding what kind of incentives convert into valuable users. (StellaSwap Incentive Program). The Liquidity Incentives Program allocates 1M DOT over 12 months to incentivize liquidity provision across 20 farms, targeting a TVL of $55 million. Grants exclusively reward LP stakers with DOT & STELLA tokens to deepen market liquidity and enhance price efficiency.

Examples of Tokenguard usage:

Tokenguard is being utilized by the community and various Polkadot dApps for promotional purposes:

We value your feedback and invite you to the discussion!

Full proposal available here

Discussion available here