KGeN's ability to verify user quality has become a significant competitive advantage for it as a partner.

Author: Delphi Digital

Compiled by: Deep Tide TechFlow

Below is how @KGeN_IO is redefining user acquisition and engagement strategies in the Global South through innovative approaches.

1. Delphi Report Highlights

Delphi's complete consulting report provides an in-depth analysis of the following:

• Major challenges in game distribution

• KGeN's new user acquisition model

• KGeN's economic system and token model

• Industry competitive landscape

• Future growth and monetization strategies

2. Challenges in Game Distribution

Compared to traditional games, Web3 games face more obstacles in distribution, such as platform restrictions, regional bans, and niche user groups, making the distribution process more complex.

Nevertheless, growth opportunities still exist. The next wave of growth is not focused on North America or Europe, but rather on the Global South (such as Asia, Africa, and Latin America). This trend is driven by the following factors:

• Significant increase in smartphone penetration;

• Expanding internet infrastructure;

• The rise of a generation of digital native players with a growing demand for online interaction and digital content.

3. KGeN: Redefining User Acquisition

KGeN has seized this market shift by redefining user acquisition (UA) through innovative incentive mechanisms.

It aligns the interests of publishers and players through reward tasks while utilizing a "Proof of Gamer" (PoG) system—a decentralized reputation assessment mechanism that helps game studios find high-quality users at a lower cost.

Traditional user acquisition models often require payment for low-quality installs, whereas KGeN's effective customer acquisition cost (eCAC) model is different. Publishers only need to pay when players reach specific engagement milestones.

For example:

• In a collaborative event with Karate Combat, eCAC costs were reduced by 40%;

• In a collaboration with Game7, 50,000 users were successfully attracted at a cost 55% lower than competitors.

KGeN's ability to verify user quality has become a significant competitive advantage for it as a partner.

KGeN's PoG engine achieves precise targeting and user reputation management through five core dimensions:

• Proof of Human: Filters out bot users through KYC (Know Your Customer) and social verification;

• Proof of Play: Measures player engagement, retention, and activity patterns;

• Proof of Skill: Tracks player achievements, match performance, and game progress;

• Proof of Commerce: Analyzes spending behavior and on-chain transaction records;

• Proof of Social Network: Assesses players' social influence and guild activity.

Since January 2024, KGeN's total data attributes have grown by 992%, further enhancing its precision targeting and reputation management capabilities.

KGeN's PoG engine is rapidly evolving, currently covering over 270 million data attributes, involving 13 million accounts and 4.4 million monthly active users (MAU).

From user engagement to spending behavior to social interaction, all metrics show significant growth. This data further solidifies KGeN's position as a leader in the Web3 gaming player reputation system.

KGeN is not just a task platform; it is building a gaming economic system centered around social interaction. In this system, "guilds" play an important role. Guilds are small communities made up of players that grow through recommendations among players. Currently, there are over 2,500 active guilds recruiting new members and maintaining community engagement.

Guild leaders are rewarded for attracting new players and maintaining community activity. This bottom-up growth approach makes KGeN a leading task and reputation platform in the Web3 space.

KGeN's model creates a powerful flywheel effect: As more players join, the PoG dataset continues to expand, attracting more game studios and publishers to participate. This, in turn, further drives the ecosystem's reward mechanisms and user growth.

This virtuous cycle makes KGeN the most active Web3 task and reputation platform currently.

To support its economic system, KGeN will launch a dual-token model: an on-chain incentive token—KGEN, and an off-chain reward currency—KCash.

Players can earn KGEN by completing tasks and redeem it in the KGeN store for in-game items, gift cards, and VIP experiences.

Initially, KGEN will primarily serve as an incentive token, but its use will gradually expand in the future. For example, users may enjoy discounts in the KGeN store using KGEN. Additionally, tasks may set subscription thresholds to enhance user engagement.

KGeN's staking mechanism provides users with non-inflationary rewards: guild leaders can expand their member base by staking KGEN, while publishers can achieve free user acquisition (UA) through staking.

In the first phase, KGeN is decentralizing its reputation system through a distributed oracle network. This initiative aims to protect the integrity of PoG data and provide greater transparency for players and publishers.

In this system, oracle operators earn rewards by staking tokens while playing a crucial role in verifying the authenticity and integrity of the data.

Oracle Key NFTs are an indispensable part of the KGeN ecosystem, with their distribution linked to license expenditures. In the first phase, these NFTs are locked in user accounts, but in the second phase, they will become tradable assets and support delegation features for staking rewards.

The distribution of rewards is based on the number of staked NFTs, base emissions, and users' actual performance. As the network scales, base rewards will also grow accordingly. This model, combining mixed nodes and delegated proof-of-stake, not only enhances the functionality of the PoG engine but also effectively reduces centralization risks.

4. Competitive Landscape of Web3 User Acquisition

Currently, Web3 user acquisition (UA) models are mainly divided into two types: publisher ecosystems and task platforms. Publisher ecosystems (such as Ronin, Immutable, and Xai) typically provide developers with funding support, infrastructure, and token subsidies to help them attract players more quickly.

However, the limitations of these ecosystems include:

• Lack of in-depth data analysis of user behavior;

• Greater focus on developer fees rather than optimizing player acquisition effectiveness.

5. KGeN's Competitive Advantage

Although many task platforms adopt similar "quest-to-earn" models, their true competitiveness lies in scale and outcome-oriented value.

Currently, the market demand for high-quality user acquisition is unprecedented. However, statistics show that in 2023 alone, bot and low-quality user participation led to approximately $84 billion in wasted digital advertising budgets.

KGeN's PoG engine successfully builds competitive barriers by introducing two mechanisms: "Proof of Human" and "Proof of Play." This ensures that publishers' spending is directed only towards genuine user engagement rather than fake traffic.

However, merely filtering for real users is not enough to ensure long-term success. KGeN's continued growth also relies on the following two points:

1. Monetizing user behavior data (such as spending preferences);

2. Utilizing PoC data to optimize the precise targeting and user acquisition strategies for target users.

To achieve scalable growth, KGeN must demonstrate that Web3 players rely not only on incentive mechanisms but also possess sustainable monetization potential.

KGeN's early growth primarily depended on financial incentives, but its long-term success requires a gradual shift towards intrinsic motivation.

By promoting on-chain transactions and combining user activities with spending behaviors, KGeN can gain an advantage in data accumulation. As the PoG data expands and AI-driven precision targeting technologies are applied, KGeN will further enhance user retention capabilities and establish an unshakeable market barrier in the Web3 gaming sector.

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