Written by: TechFlow
As the market experiences wave after wave of project births and eliminations, people are gradually realizing that the power of the community is crucial to the healthy and sustainable development of a project.
More and more Web3 projects have begun to focus on their own community building and have established a variety of reward mechanisms to motivate the community. Common incentive models include transaction fee dividends, distribution of new assets (such as airdrops of new NFTs or project tokens), etc.
But even so, most Web3 projects are unable to provide long-term and effective returns to the community, leading to the eventual collapse of the project.
On the one hand, the price support of many projects relies on the Ponzi model. If there are no new entrants, the token price will not be maintained for too long. On the other hand, the revenue of many projects depends only on the transaction fees generated by token transactions. Without the support of real value, this is tantamount to castles in the air and will eventually lead the project into a death spiral.
What kind of incentives are long-term and effective for the community? Lingo has explored a set of Web3+RWA solutions.
Through Web3+RWA, Lingo hopes to solve the problem of project community incentives, provide a sustainable reward mechanism for community members, and change the way traditional loyalty programs operate.
What does Lingo do?
In the official white paper, Lingo stated that it wants to create a growing rewards ecosystem that generates real-world community rewards regardless of token and market volatility.
In simple terms, Lingo wants to use project revenue to purchase real-world assets, and continuously generate new revenue through real-world assets to maintain the stable operation of on-chain projects.
The specific business plan is:
The transaction fees of on-chain tokens are used to purchase real assets (such as real estate) → the income from real assets is used to increase community rewards and repurchase tokens → the community grows → the transaction volume increases and the token price rises → more real assets are purchased.
Lingo has set a 2.5% transaction fee for each $LINGO transaction, which is used to purchase real estate in cities such as London, Paris, Miami, and Dubai. These properties will be used to earn rental income, and all net proceeds will be used to support the Lingo loyalty points store and monthly token buybacks. Future real estate purchase decisions will be implemented by voting by the Lingo DAO.
It is worth noting that Lingo does not tokenize the real estate it owns and is not a real-world asset tokenization protocol. Lingo only tokenizes the income from RWA, which means that Lingo tokens are relatively less affected by fluctuations in physical real estate prices, and the main source of value is rent.
In terms of the selection of underlying assets, Lingo only selects world-class cities and regions, such as Paris, Dubai, Miami and other major cities, with long-term stable returns, with an average target of 6%. At the same time, Lingo will also use its partnerships to negotiate bulk orders and discounts, thereby bringing higher rewards to community users.
Such a positive cycle not only enables tokens to capture value beyond price increases, but also maintains long-term incentives for the community and drives the sustainable development of Lingo.
Loyalty Model Pros
Lingo's team includes Web3 and Internet experts from Binance, Consensys, Microsoft and Booking.com, and has received $5.5 million in private round financing.
Founders HM Rawat and David Amsellem previously founded premium loyalty program company John Paul, which was acquired by AccorHotels for $150 million, so when it comes to loyalty building, the Lingo team is a veritable army of regulars.
By introducing John Paul's experience and combining blockchain and real-world assets, Lingo aims to provide rewards to users through its token $LINGO. Users can earn loyalty points by holding tokens, which can be exchanged for rewards supported by various real assets. They are no longer "air" with empty value.
Earnings are backed by the RWA system, which guarantees point distribution regardless of market conditions
Lingo has established partnerships with more than 3,000 physical companies around the world, including Nike, Spotify, Starbucks, Netflix, PlayStation, etc., covering various fields such as shoes and clothing, entertainment, catering, transportation, etc.
In the future, users can redeem loyalty points for a variety of real assets or services. It seems that Lingo is serious about bringing physical incentives to the community.
Airdrop Event
Currently, Lingo is carrying out an airdrop event. After entering the event page, users can unlock more islands and 0-cost project tokens $LINGO by completing social media tasks and inviting new users. Users who unlock three islands will have the opportunity to share an exclusive 40% additional airdrop.
