I’d like to open a discussion on the inclusion of memecoins and simple onchain applications, like ones that allow you to post “gm” onchain, in the Retro Funding Onchain Builder Program.
To recap: The Onchain Builders program rewards projects, that have deployed their own contracts on the Superchain, with monthly Retro Funding rewards based on measurable onchain impact like transactions, gas fee contributions, TVL and unique user interactions. Dive into the docs here.
The Dilemma
We’re observing a rise in projects like memecoins and onchain GM applications performing quite well by certain metrics, notably user adoption. You can find current RF Onchain Builder results here.
These projects are garnering significant engagement, but they also raise a critical question: should Retro Funding reward these types of projects, and if so, how generously?
Arguments Against Rewarding Them:
- Perceived Lack of Long-Term Value: One might argue that these projects don’t contribute meaningful, long-term value to the ecosystem. They might be fun or trendy, but they don’t advance the ecosystem’s value and bring us closer to …
- Limited Innovation: Compared to other applications that push boundaries, memecoins and simple apps are less innovative. We might risk incentivizing more of these low-effort projects if they receive significant rewards.
- Airdrop Farming Concerns: There’s a concern that such projects are often used by users to farm airdrops, rather than contributing to genuine, sustainable growth.
Arguments in Favor:
- Meeting User Demand: These projects clearly fulfill a demand. The high usage indicates that users find value in them, and ignoring this demand could mean missing out on what users actually want. A big factor here is the rise of “mini apps” which make fun, straightforward actions onchain more enticing to users.
- User Base Growth: Memecoins and onchain GM apps might serve as entry points for new users, introducing them to the ecosystem. This can have long-term benefits as these users eventually explore more complex aspects of the blockchain.
- Differentiation: Right now the market for onchain applications is fairly immature, with the dominant players like DEXs or lending markets, heavily benefiting from degen behavior that is not very different in motivation to memecoins. When the market matures, we should naturally see what we consider as “more valueble applications” winning out.
Request for Feedback
I’d love to hear the community’s thoughts on this. Should Retro Funding continue to reward these projects? If so, how do we balance rewarding user engagement with incentivizing long-term, innovative contributions?
