How Strava and Tokenomics Are Building Communities and Incentivizing Users

How Strava and Tokenomics Are Building Communities and Incentivizing Users

In today's digital age, the power of community cannot be underestimated. Whether it's a fitness app like Strava or a creator-driven project with its own social token, building a community is key to success. Both Strava and tokenomics have harnessed the power of community to create thriving ecosystems that keep users engaged and motivated. Let's take a closer look at how these two concepts intersect and what creators need to know before embarking on their own community-building journey.

Strava: From Avid Cyclists to a Global Community

Strava, the fitness app that has become a religion for many, started by targeting avid cyclists. They understood that by bringing together like-minded individuals who took fitness seriously, they could create a community-led growth model. In 2006, when technology had advanced enough for people to carry GPS devices and lightweight heart monitors, Strava was born.

The big hook for Strava users was the leaderboard, a ranking system that allowed cyclists to see how they stacked up against others who had ridden the same route. This concept was borrowed from online gaming but had the added appeal of being linked to real-world physical activity. The combination of competitive segments and the support of a community of like-minded individuals created a powerful draw for users.

Over the years, Strava has expanded beyond just avid cyclists. While men still make up 75% of users, women have found their niche in running. Strava's annual report of stats reveals interesting trends, such as the fact that the second week in January is known as "quitters' week" when newly active users are more likely to give up. These insights help Strava tailor its offerings and engage users more effectively.

The success of Strava can be attributed to its ability to build goodwill within its community. While users may start as solo athletes tracking their own activities, the hope is that they will become hooked on tracking friends and peers, pushing themselves to achieve more. Strava's global reach, with over 80% of users outside the US, highlights the universal appeal of community-driven fitness.

Tokenomics: Incentivizing Community Participation

Tokenomics, a term derived from "token" and "economics," refers to the design and implementation of a token's economic system. Creators who want to launch a social token need strong token economics to ensure acceptance and participation within their community.

The first step in creating a social token is to gather a strong community around a joint project. The key is to go beyond the creator's individual vision and create a project that requires collaboration and collective effort. This collaborative approach allows fans and community members to come together, create platforms, and tackle challenges in pursuit of a broader goal.

When it comes to token design, creators should consider a fixed supply to ensure better usability and lower entry barriers. It also gives community leaders full control over token distribution and doesn't require immediate financial commitment from users. While the standard supply is often set at 10 million tokens, successful communities have thrived with both lower and higher initial supplies.

Incentivizing early believers and rewarding community members is crucial for the long-term success of a decentralized community. Creators can allocate tokens through bounties and budget allocations. Bounty hunters are flexible contributors who participate on an ad-hoc basis, while core contributors and staff members take on more complex missions and commit to long-term involvement.

Having a sufficient treasury to reward active community members is essential. It's important to consider anyone who receives tokens as an investor in the project. Financial incentives play a significant role in motivating contributors and ensuring their continued engagement. A highly volatile token may deter contributors from investing their time, as they may fear that the token's value could plummet.

Additionally, creating a liquidity pool for the token can impact its price. While it's not the sole factor that influences price fluctuation, the token being bonded with can have an effect. Careful consideration should be given to the liquidity pool and its potential impact on the token's value.

Actionable Advice for Creators

Building a successful community-driven platform or project requires careful planning and execution. Here are three actionable pieces of advice for creators looking to harness the power of community:

• 1. Identify your target audience: Just as Strava targeted avid cyclists, creators need to identify their target audience and understand their needs, motivations, and preferences. Tailor your community and offerings to cater to their specific interests and build a strong foundation.

• 2. Foster a sense of belonging: Strava's success lies in its ability to create a community of like-minded individuals who support and motivate each other. Encourage interaction, collaboration, and shared experiences within your community. Foster a sense of belonging and make users feel valued and appreciated.

• 3. Provide incentives and rewards: Incentivize community participation by offering rewards and incentives. Whether it's through tokens, exclusive content, or access to special features, give users a reason to actively engage and contribute. Recognize and reward their efforts to foster loyalty and long-term commitment.

In conclusion, both Strava and tokenomics have demonstrated the power of community in driving engagement and success. Strava's focus on building a community of avid cyclists and its competitive leaderboard has created a loyal following. Tokenomics, on the other hand, provides creators with a framework to incentivize community participation and create a collaborative ecosystem. By understanding the common points between these two concepts and incorporating unique insights, creators can build thriving communities and harness the power of collective effort.