Welcome to Quest Protocol

Engagement is the new currency – Enhancing purpose, community, and loyalty with every interaction.

Quest Protocol is transforming the way digital organizations do engagement.

Problem

Here are some stats from the industry -

• Daily Active Users (DAUs) on Web3 dApps are plummeting, 60% of potential users drop off during the onboarding process and the average user retention rate for dApps is only 15%.

• 60% of potential users drop off during the onboarding process due to the complexity of wallet setup and transaction handling. (Source: dApp Market Analysis 2023).

• The average user retention rate for dApps is only 15%, significantly lower than the 45% average for traditional web applications. (Source: Web3 User Experience Study 2023)

• Reports indicate that blockchain companies spend an average of 35% of their budget on marketing and user acquisition, compared to the 20% average in traditional tech sectors. (Source: Tech Industry Financial Report 2023).

• The average development cycle for a dApp is 12 months, compared to 6 months for a standard web application, as per industry benchmarks. (Source: Software Development Trends 2023). Delays in time to market can result in a 25% loss in potential revenue and missed market opportunities. (Source: Web3 Business Impact Study 2023).

Beyond Points and Badges: Redefining Web3 Engagement

The fundamentals of user experience in crypto haven’t changed since 2016. Building in consumer crypto is 10x harder... because the end user may not be a crypto-native consumer who is willing to endure terrible UX for short-term profits.

In the last few years, we have seen points and badges (or achievement tokens) used abundantly across Web3 to drive user engagement. But let’s be real — these strategies often fall short when it comes to building genuine loyalty and community belonging over the long haul.

The proof lies in the drastic downward turns we see in actual user participation and spending in many web3 spaces once the initial hype fades or market conditions shift. The trends make it clear — many of the engagement approaches today enable short-term behavioral spikes but fail to create enduring bonds.

So arguably the biggest need at this stage of web3 is figuring out how to facilitate meaningful, sustainable user engagement that translates to long-term brand devotion and most importantly — Revenue. Major players in the space recognize this imperative and have responded with attempts to advance core engagement infrastructure adding millions of dollars and resources.

At Quest Protocol, we have identified this problem early on and are behind in solving it for all the dApps and Brands out there. Let's dig deep into how we are trying to build a sustainable, modular, plug-and-play, engagement layer of web3.

While the initial focus on improving wallet-based login experiences is crucial, it's only the first step in a user's journey in the Web3 space. The real challenge lies in what comes after onboarding - keeping users engaged and retained.

Solution

Gamification enhances user engagement with applications beyond ownership and speculation. The Consumer Crypto space has reached a maturity level where it has begun to focus on incorporating additional experiences around digital collectibles using gamification features. The key elements of gamification in consumer crypto include user experiences related to gameplay, social gratification, and a sense of community.

The space has seen many examples of gamification; gameplay in games like Axie Infinity, Dookey Dash, and The Worlds Largest; social gratification in media & entertainment apps like leaderboards on Sound, SuperRare, and 9dcc; sense of community across generative projects with a collection of unique NFTs like Punks, Squiggles, and Apes.

The gamification of applications can attract more users and maintain growth during bear markets, which typically slow down when relying solely on ownership. By prioritizing gamification and keeping speculation as a secondary feature, crypto-based applications can appeal to users throughout all market cycles. When the market rises, speculation can then stimulate faster growth.

With many of these leading apps having hurdled the User Experience challenges, the next product releases are centered around building out the gamification experiences and better surfacing the immediate gratification from ownership. In the cryptomedia category, the gamification aspect has a strong focus on access and exclusivity. Early examples include gated chats and tiered access to exclusive content, along with in-real-life experiences. The social gratification component is evident in leaderboards for top collectors and viral artists, curator rewards, and social feeds. The community component is highlighted by generative collectibles or unique editions.

Quest Protocol

Quest’s Embedded SDKs unlock Web3 Adoption & Growth through such as dynamic & personalized Web3 onboarding, quizzes, in-dApp guides, searches, Quests with XP, and more.

Our SDK & APIs include both the UI Components for devs as well as the No-Code Data platform that powers AI-powered personalization.

Developers & Product Teams can build and deploy Web3-powered experiences with the Web3 part abstracted away. SDKs that abstract Web3 seamlessly and take your users from onboarding to adoption to engagement to retention.

Future

Additionally, with the rise of LLMs, we’ll see more consumer apps curate personalized experiences for consumers based on their on-chain persona and activity. Quest is poised to solve this with our Data platform that collects Zero-party data from the UI components and combines it with on-chain, social, community, and web2 data from DBs and warehouses such as segment & snowflake, and more to drive AI-powered personalized recommendations.