@Lorenzo Protocol It is said that 227,000 users participated in the yLRZ points system. This number sounds impressive, but if you analyze these users' behavior patterns and retention data deeply, you will find that the truth is far from optimistic. Most users may just come to collect points and leave; there may only be a few thousand truly long-term active users.
From on-chain data, Lorenzo's enzoBTC holding addresses are about 15,000, while stBTC holding addresses are only a few hundred. This shows a huge gap compared to the 227,000 yLRZ users, indicating that the vast majority of yLRZ users do not actually hold Lorenzo's products. They may have just completed some low-threshold tasks, such as following on Twitter, joining Discord, or reposting posts.
Lorenzo's task list on the Zealy platform is extensive, including various social media interactions, content creation, community discussions, etc. Many tasks require no financial investment; they only need some time and effort. The benefit of this design is that it lowers the participation threshold, attracting more people to learn about Lorenzo. The downside is that many who are attracted are just there to take advantage.
From the user behavior funnel, 227,000 may be the total number of users who have completed at least one task. However, if you look at those who have completed more than 10 tasks, there may only be a few tens of thousands left. For those who have completed more than 50 tasks, there may only be a few thousand. Truly sustained participation for over three months may only involve one or two thousand people.
This funnel is actually quite normal; any growth activity will have a significant amount of churn. The key is for Lorenzo to identify which users are truly valuable and which ones are just here to take advantage of the situation, and then to operate accordingly.
From the perspective of point distribution, it should present a power-law distribution. A small number of top users may account for over 50% of the points, while most users have very few points. This distribution indicates both the high contribution of top users and the insufficient participation depth of long-tail users.
Lorenzo distributes BANK tokens each month based on the proportion of points. If the distribution of points is too concentrated, then the monthly BANK distribution will also be concentrated. Most small users may only receive a few or dozens of BANK each month, which at the current price may only amount to a few dollars. This level of reward is hard to maintain their participation enthusiasm.
From a time perspective, Lorenzo's user retention curve should show a sharp decline. In the first month, there may be several tens of thousands of active users, but in the second month, it may drop to half. By the third month, it could be only a quarter. By the sixth month, only a few thousand may still be participating.
This retention rate is actually considered normal among Web3 projects; many airdrop activities have even lower retention rates. The issue is how Lorenzo can continuously inject new vitality into the community to maintain activity during this natural decline.
One possible strategy is to implement tiered operations. For high-value users at the top, provide more attention and privileges, such as inviting them to participate in beta testing, offering exclusive community channels, and even considering them as candidates for the committee. For mid-tier users, design some advanced tasks to encourage them to transition from light to deep participation. For long-tail users, mainly maintain basic interactions through automated tools without investing too much manpower.
From the user profile, among Lorenzo's 227,000 users, there may be several typical groups. The first group consists of DeFi veterans who are already using various BTC-wrapped assets. Trying out Lorenzo's products is a straightforward task for them. This group of users tends to have a higher retention rate because they have real needs.
The second category consists of professional opportunists who specifically track various airdrop and point activities, going wherever there are rewards. The retention rate for this group is very low; once Lorenzo's point activities end or better opportunities arise, they will immediately shift their focus.
The third category consists of cryptocurrency investors who may hold BTC or stablecoins. They find Lorenzo's promotions interesting and come to try it out, but they are not very familiar with DeFi. The operational barriers might deter them, and the conversion rate for this group depends on how well Lorenzo's user experience is designed.
The fourth category consists purely of onlookers who may have seen Lorenzo on social media and found it interesting, joining Discord or following Twitter but never actually using the product. This group of users is unlikely to convert, but their existence can bring some brand exposure to Lorenzo.
Lorenzo should focus on managing the first and third categories of users. The first category is the base; maintaining their satisfaction and loyalty is essential. The third category is where growth can occur; lowering their usage barriers and providing better guidance and support is key. The second category of users, although they have a low retention rate, can bring short-term data growth and social media buzz, which has some value. The fourth category of users can basically be ignored.
From the activity level on Discord, Lorenzo's server has 57,000 members, but only a few hundred to a thousand may be truly active. Most members are just hanging around, occasionally checking announcements, and rarely speaking or participating in discussions. This activity ratio is considered normal within the Discord community.
Lorenzo can enhance Discord's activity through some incentive measures, such as hosting AMAs on Discord every week, allowing users to directly ask the team questions, or setting roles and permissions that only active members can obtain, giving them a sense of special identity.
The situation on Twitter is similar; Lorenzo has over 200,000 followers, but only a few thousand may actually retweet and interact. Most followers might be bought or inactive accounts. Lorenzo needs to identify real active followers and strengthen interactions with them.
$BANK The distribution of token holders can also indicate issues. If the 227,000 users are all genuine long-term participants, there should be at least tens of thousands of BANK holding addresses. However, the actual number of holding addresses may be far lower than this figure, indicating that most yLRZ users have not yet received BANK allocations or sold them immediately after receiving.
#LorenzoProtocol We need to face the reality behind the 227,000 users; we can't get lost in false prosperity. What truly matters are those core users who hold the product for the long term, deeply engage in the community, and are willing to contribute to the protocol. This group may only number in the thousands, but they are the cornerstone of Lorenzo's future development.
