[REDACTED] 2024 | Presentation: Flipside s Dave Balter

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1. 0:01

   so the first surviving set of quintuplets were the Dion quintuplets they were born in 1934 in Ontario Canada um please meet yvon Annette uh Cecil Emily and Marie uh they were born to Farmers and uh immediately the uh Canadian government took these girls into custody and they said that they did it to uh ensure their survival and to make sure that they weren't exploited uh what happened from here is pretty odd actually um the government

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   actually uh took the girls and they built something called quintland which was a location for them to reside every day uh there were caretakers there were doctors there were nurses but importantly they set it up so that tourists could come witness the girls in their daily habitat the girls were returned to their parents at their age of nine and they suffered for the rest of their days with a rather strained relationship from a pretty unusual upbringing all of this of course brings me to blockchains and I have some pretty

3. 1:04

   unfortunate news uh every blockchain out there is nearly identical like quintuplets hey you can we know it all like we've seen all this you know there's distributed ledgers there consensus mechanisms smart contracts transactions like we it's all the same thing and we we're just tourists we're sitting around watching and observing trying to find differences between them um actually though if you do look

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   closely you might start to see some differences between these um all blockchains are not identical we understand there's different consensus mechanisms speed of transaction what's being built on each of them certainly for near AI as a very specific designation every blockchain you're starting to see has a lot of uh uh information that is not identical and so there is one thing I want to point out though that every blockchain does need and every blockchain has to follow uh

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   they all need the same metrics to grow and I'm here to talk about what those metrics are what the growth tactics are how you can actually organize them and if you do that well how you can use that to increase token performance so let's start with wallets um wallets are something we all know a lot about um there's actually about 613 wallets um across all of crypto maybe that's growing now as the market is starting to really enter both stage but there's about 613 million wallets out there and um they're not all created

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   equal so so um the way you make your blockchain successful is you start to understand which wallets are going to be performant and which ones aren't as a matter of fact if you increase wallet production to about uh to good wallets quality wallets we'll talk about what that means by about a half a percent if you grow quality wallets in your ecosystem you grow market cap by about 1% which can be rather large as scaling

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   organizations now wallets for most ecosystems follow a U-shaped curve if you take a million wallet wets in most ecosystems they're spending less than $200 and if you go all the way to the right if you go up the U-shaped curve you're only going to have about 2500 spending 200,000 or more hey that alone should tell you something if you're looking at what wallets are going to be productive for you you need to think about ones that are going to actually spend more so think about this if you had a $100,000 to spend in order to

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   access wallets or to bring wallets into your ecosystem and you go after wallets that are scored a one which on that U-shaped curve 0 to 15 one is all the way at the left you're going to get maybe 25,000 wallets and that might be interesting and you might get some Roi in that about 300% Roi but if you went after wallets that were up the curve five and above you're going to get many more wallet or many less wallets about 5,000 wallets but you're going to get

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   much more production uh about $60 Million worth of production 11,000 per return so you want to start thinking about wallets in terms of scoring now we happen to score every wallet across all the ecosystems we deploy at flips side it's a 0 to 15 scale there's many metrics that go into this so you're seeing here some you know defi things we all know do they behave well with tokens

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    what do they do with airdrops governance behaviors things like that if you look at actually wallets across ecosystem you start seeing some interesting Trends the one in the upper right here is bass okay the thing you might notice with bass is that there a a lot of zero and ones in base that's a big opportunity they're pulling people in but they're not quite activating them all the way through that funnel yet I'm going to highlight two for you today because we're going to

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    focus on two and how they compare so Avalanche is this one and the this one right here is near okay so take a look at those start thinking I'm going to ask you to think think for a second about the differences we're going to talk about them but you can see there's some differences in 0er to 15s across Avalanche and near and how that uh redeems itself in production I'm going to show you exactly what that means okay

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    if there's one thing you want to take take away from this presentation font's a little off here but if you want want to take one thing away it's this it's the fluff flip side utilization funnel this is what we run for every single blockchain that we partner with at the top you need awareness that is measured by Impressions you move down into acquisition of wallets you need those in your ecosystem measure by new addresses underneath that you need to produce those wallets start getting them to run

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    transactions and then the thing that's most important that most blockchains don't think a lot about is retention how are you sure that those wallets aren't leaving your ecosystem how long do they stay in if you can push through these things you're going to get outcom so this isn't like fluff this isn't like marshmallow fluff this is real um you should pay attention to this if you're thinking about running um while it's on

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    your blockchain um on the right here are a whole bunch of our clients so you can see the types of clients that we work with um and if you do this well if you actually run the system well you're actually going to do something pretty amazing which is you're going to to increase token performance okay I'm going to show you what that means right here um the red line are flip side Partners the gry line is a benchmark of

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    BTC and eth okay this is price okay so be very blunt about it flips side Partners who run growth mechanics across their ecosystems outperform a benchmark of BTC and eath by about 100% you can do this across any benchmarked 20 Pier tier one chains whatever you want to do basically if you want Drive actual performance and tokens you're going to start thinking in metrics of funnels

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    like fluff um how do we do this so we we start with data um and um what we do is we curate data for ecosystems we model and publish it we give it away entirely for free and the reason we do that is because data is The Language by which people speak in crypto and you want as many analysts and developers and Builders using that data to do things um but that data requires activation in order for it to become valuable so I'm going to show you what that means the

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    yellow line here is the price of a token after it is launched data on any platform Flipside Dune nanson doesn't matter any platform and what happens to its price over time you're going to notice at the beginning there's a promotional bump hey data is now live on this platform and then it sort of levels off the purple line is when you drive growth mechanics after about 120 days you typically see about a 60%

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    outperformance of token price if you're activating growth so don't just launch data make sure you're using production I'm going to show you this in color and how this can work for near so this is a program it's called top end and topend compensates analysts who generate an Insight that has a certain level of so social reach top 10 of all social reach they're going to get paid $150 $3 an hour in Native token so I'm going to show you this in color the blue dots here are social Impressions yellow

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    is token price this is um last after nearon last year and after performance so the first thing you'll note is the grouping of as of Impressions early using nearon and a whole bunch of other events you see the token performance start to move you see some downward pressure as Impressions start to to um let up and here's what's interesting is this grouping on the right so the first bullet here is what we call a boost window activating analyst to produce more and more content beginning the top

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    of that funnel if you're following it all the way down you can see actually here there's about a 63% increase in token price this also works on the inverse when tokens are decreasing you can slow the token price performance number two here um the whole Market went down about 14% near only went down about 9% and then you boost again here's a 4% increase at the end of this cycle okay

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    so this is something people should be doing actively figuring out how to create return uh for their their assets um so let's go in practice for Avalanche and then we're going to show this against near for a second so top of the funnel um Avalanche we create actual Impressions off these dashboards you get about three million impressions non- random these are targeted these go to people who care about crypto so people are going to pay attention to these

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    insights and visualizations um you're going to use that to access and activate new addresses about three 23,000 new addresses will come in off off about three million impressions um and what you want to do with those folks is do things like quests and do things to show that they're performant but once you start scoring addresses you don't want to treat everyone the same you want to take those addresses and those that are

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    going to be performant those that are up in the fives and sixes and sevens you want to offer more things to do maybe at a higher price I'll give you $3 in token if you uh stake your assets I'll give you more if you use a different liquidity thing Etc so here's why scoring really matters okay it is correlated to market cap um these are ecosystems with wallets with a score of four plus that's at the bottom you can see pretty clearly as those as those

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    four pluses go up so does market cap so does their the top of their funnel um here's near okay here's something very interesting about near most ecosystems have a vast majority of addresses that are zeros they show up they will take an air drop they will do something they will go to the next ecosystem near has what's called a plurality of of address is in ones okay near is extremely good

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    at getting people to start in the ecosystem and begin doing more things in that ecosystem okay that's important that's really hard to do most ecosystems fail at this but here's where it gets tricky okay where you're looking at here and the red are addresses that are scored seven um to uh 15 and uh Pink is uh 10 to 15 okay so you're seeing on the left is near you're going to see lower in both buckets near has 30 times the number of addresses that are one than uh

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    Avalanche however Avalanche has um 20% or sorry near has 20% less seven plus addresses it has 38% less 10 plus addresses okay and that's what's impacting fdv that's what's impacting uh outcomes and that's something that needs to change so we work with near on that what do you do to change that two solutions drive more complex transactions not basic peer-to-peer transactions more credit expansion products like that you're going to get more people to start to produce they're going to stick around

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    for longer you're going to get more of those high-scoring addresses and outcomes and now you may be asking yourself from earlier Flipside produces data for near it gives it away for free it's impossible for us to make money that doesn't seem like a good business model here's how we make money 10% of Treasury should be used to drive growth right we are a treasury business we work with our partners um we get Del

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    delegations from them we become a valider in their Network we get delegations from them we only hold assets for our clients we are a treasury business if we lift token prices for our clients we succeed they succeed so their assets are delegated we stake we drive yield percent of that yield goes to us the rest of that yield goes to incentivize this activation to make scores higher in an ecosystem that's how you use yield to go create

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    outcomes okay so in summary last I'll tell you we orchestrate growth for blockchains that's all we do we have a curated model data set 150,000 analysts that activate we go and we score everything we then run the fluff model we create token out performance okay so while all blockchains are not identical we know that we know it's true they all do require the same growth funnel to

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    succeed thank you