Delphi Digital Research Report: KGeN’s “Player Proof” redefines game incentives and player growth

KGeN’s ability to verify user quality makes it an important competitive advantage for partners.

Author:Delphi Digital

Compiled by: Shenchao TechFlow

Here’s how @KGeN_IO is redefining user acquisition and engagement strategies in the Global South in innovative ways.

1. Delphi Report Highlights

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

• The main challenges facing game distribution

• KGeN’s new user acquisition model

• KGeN’s Economic System and Token Model

• industry competition pattern

• Future growth and monetization strategies

2. Challenges of game distribution

Compared with traditional games, Web3 games face more obstacles to distribution, such as platform restrictions, regional bans, and niche user groups, which make the distribution process more complicated.

Despite this, growth opportunities still exist. The key markets for the next wave of growth are not North America or Europe, but the global South (such as Asia, Africa and Latin America). This trend is driven by:

• Significant increase in smartphone penetration;

• Expanding Internet infrastructure;

• With the rise of a generation of digital Native players, their demand for online interaction and digital content continues to grow.

3. KGeN: Redefine user acquisition

KGeN has seized this market shift and redefined user access (UA) through innovative incentives.

It aligns the interests of publishers and players through reward tasks, while leveraging the Proof of Gamer (PoG) system, a decentralized reputation assessment mechanism, to help game studios find high-quality users at a lower cost.

Traditional user acquisition models typically require paying for low-quality installations, while KGeN’s effective customer acquisition cost (eCAC) model is different. Publishers are only required to pay a fee when players reach specific participation milestones.

For example:

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

• In its partnership with Game7, it successfully attracted 50,000 users at a cost 55% lower than its competitors.

KGeN’s ability to verify user quality makes it an important competitive advantage for partners.

KGeN’s PoG engine achieves precise positioning and user reputation management through the following five core dimensions:

• Proof of Human

• Proof of Play: Measure player engagement, Retention rate and activity pattern;

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

• Proof of Commerce: Analyze consumer behavior and chain transaction records;

• Proof of Social Network: Assess players ‘social influence and guild activities.

Since January 2024, KGeN’s total data attributes have increased by 992%, further enhancing its precise positioning and reputation management capabilities.

KGeN’s PoG engine is rapidly developing and currently covers more than 270 million data attributes, involving 13 million accounts and 4.4 million monthly active users (MAUs).

From user engagement to consumer behavior to social interactions, various indicators have shown significant growth. These data further consolidates KGeN’s position as a leader in Web3 game player reputation systems.

KGeN is not just a mission platform, it is building a game economy with social interaction at its core. In this system, clans play an important role. Guilds are small communities of players that grow through recommendation relationships among players. Currently, more than 2,500 active guilds are recruiting new members and keeping their communities active.

Guild leaders are rewarded for attracting new players and maintaining community activity. This bottom-up growth approach makes KGeN the leading mission 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 available.

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

Players can earn KGEN by completing missions and redeem in-game items, gift cards, VIP experiences and other content in the KGeN store.

In the early stages, KGEN will be mainly used as an incentive Token, but its use will gradually expand in the future. For example, users can enjoy discounts using KGEN in the KGeN store. In addition, tasks may set subscription thresholds to increase user engagement.

In the first phase, KGeN is decentralizing its reputation system through the Distributed Oracle (Oracle) network. The move aims to protect the integrity of PoG data and provide greater transparency for players and publishers.

In this system, oracle operators gain revenue by pledging tokens and play an important role in verifying the authenticity and integrity of data.

Oracle Key NFTs are an integral part of the KGeN ecosystem, and their distribution is tied to license spending. In the first phase, these NFTs are locked in user accounts, but in the second phase, they will become tradable assets and support the commission function to obtain pledge rewards.

The allocation of rewards is based on the number of NFTs pledged, base awards, and the actual performance of the user. As the scale of the network expands, basic rewards will also grow simultaneously. This model, which combines hybrid nodes and delegated proof-of-stake, not only enhances the functionality of the PoG engine, but also effectively reduces the risk of centralization.

4. The competitive landscape of Web3 user acquisition

Currently, Web3’s user acquisition (UA) models are mainly divided into two types:Publisher ecosystem and mission platform.Publisher ecosystems such as Ronin, Immutable, and Xai often provide developers with financial support, infrastructure, and Token subsidies to help them attract players faster.

However, the limitations of these ecosystems are:

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

• Pay more attention to developer fees rather than optimizing player gains.

5. KGeN’s competitive advantages

Although many task platforms adopt a similar quest-to-earn model, their true competitiveness lies in scale and result-oriented values.

At present, the market demand for high-quality user acquisition is unprecedentedly high. However, according to statistics, in 2023 alone, robots and low-quality user participation will lead to approximately US$84 billion in wasted digital advertising budgets.

KGeN’s PoG engine has successfully built competitive barriers by introducing two major mechanisms: Proof of Human and Proof This ensures that publisher spending is only used for real user engagement, not fake traffic.

However, simply screening real users is not enough to ensure long-term success. KGeN’s continued growth also depends on the following two points:

1. Moneticize user behavioral data such as consumer preferences;

2. Use PoC data to optimize precise positioning of target users and user acquisition strategies.

To achieve scale growth, KGeN must demonstrate that Web3 players not only rely on incentives, but also have sustainable monetization potential.

KGeN’s early growth relied mainly 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 consumer behavior, KGeN can gain an advantage in data accumulation. With the expansion of PoG data and the application of AI-driven precision positioning technology, KGeN will further enhance user retention capabilities and establish an unshakable market barrier in the field of Web3 games.

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