As the Web3 space continues to evolve, crypto exchanges are finding new ways to engage their users in their mission to success.
The crypto industry is a constantly evolving sector. What may be the standard today can easily be very different tomorrow. Therefore, it is crucial for companies and platforms like crypto exchanges to stay on the cutting edge and implement new innovations.
Community building is a vital element in running a successful business, irrespective of whether it offers crypto services or not. To cultivate communities based on shared interests, decentralized platforms and social tokens prove to be valuable tools. In addition, gamification and token-based rewards play a key role in motivating user involvement. A report by the Boston Consulting Group highlights the potential for Web3 technologies to create innovative loyalty programs that drive engagement and strengthen brand-consumer relationships.
Within the dynamic crypto industry, many projects are trying to engage investors, users and other stakeholders in creative ways. All with the goal of staying ahead of the competition, increasing market share and regaining user trust. Especially after the collapse of FTX, when users started to demand more transparency from crypto exchanges, and interest in decentralization got a new boost.
In addition to publishing proof of reserves, there are other ways to address these issues, such as establishing a decentralized autonomous organization (DAO).
A Web3 ecosystem for community building
Phemex, a platform that describes itself as “semi-centralized” was one of the first exchanges to publish a self-proving proof-of-reserves audit (PoR) back in late 2022, receiving PoR certification from both CoinGecko and CoinMarketCap. Moreover, Phemex has recently updated its proof-of-reserve data so that any user can verify the safety of their assets on the exchange at any time or proof whether the platform has enough assets to cover its liabilities.
Moreover, to maintain users’ trust, Phemex is using its Web3 ecosystem to cultivate community building by implementing a DAO, engaging stakeholders in shaping the platform’s direction and facilitating its growth. In practice, this means that users can own a piece of the exchange and influence its direction through the Phemex DAO. Phemex DAO members can vote on decisions impacting the platform’s growth, operations, financial management and external partnerships.
The Phemex DAO is the core of the broader Phemexia Web3 ecosystem, an interactive approach to community building and governance. Within this ecosystem, the Phemex Soul Pass, a soulbound token (SBT), is a passport to gain special privileges, such as voting in the aforementioned areas. Users who have been whitelisted or have met other thresholds can mint their Phemex Soul Pass on the Ethereum network and unlock participation in special events.
For example, users who have minted a Soul Pass can join in the xPT pre-mining event, which is a way to gain Phemex’s native tokens through trading activities, and thereby gain additional voting power within the DAO.
An interactive crypto world
As a gamified Web3 ecosystem, Phemexia consists of several areas, and at the core is the Phemex Soul Tree. This tree symbolizes the Phemex DAO and the communal foundation which upholds the platform together through decentralized decision-making.
Next to where the Soul Tree grows, community members can enter the “Maze of Knowledge.” Understanding crypto — what it is, how to handle coins safely and what trading features are available — can feel like a maze to beginners. Within the Maze of Knowledge, however, community members can learn about all areas of the crypto world through the Phemex Academy and blogs, along with the option to “learn and earn” to eventually find their way out of the maze.
The third part of Phemexia is the ongoing xPT pre-mining event. Phemex Soul Pass holders are eligible to receive xPT airdrops for trading on the Phemex platform and gain governance rights to the Phemex DAO.
By implementing a sophisticated approach to community building, Phemex aims to engage its users on a fundamental level and use its Web3 ecosystem as an interactive place to promote crypto adoption and develop its own platform.