ATTENTION: SCALING QUANTITY WITH QUALITY
our most important metric @qrcoindotfun is how much attention we are driving to the winner of our daily auction every day.
it took us 70 auctions (days) to start reliably driving 1,000+ uniques to check out the winning link every day.
that's from a dead start on day one, a fresh X account with 0 followers (now 18k), no mini app users (now 40k), etc.
from there, the simple math said if we 10x that number 3 times, we'll be driving 1 million uniques every day. big if.
of course, we needed to take it one 10x at a time.
so we worked to expand the attention we were driving from farcaster through our mini app, which is how we got the first 1,000. we figured that could accomplish the first 10x.
40 days later, it did.
we crossed 10,000 uniques for the first time and haven't driven less than 10,000 uniques any day in 9 days since.
but the market for our auctions has not immediately priced in the increased amount of attention we are driving every day.
in other words, the same auction which produced average winning bids over $1,000 for more than a month while we were driving less than 10,000 uniques per day has in the last week been producing winning bids in the mid/high hundreds even though we've been driving more attention than ever, 10,000+ uniques every day.
at face value, this might seem odd, but it is not super surprising if you think about it. we all know markets are volatile and can go up and down for any reason. this is even moreso the case when it's a small market with relatively few participants (bidders) and interesting elements like bidding wars at play. on any given day, the winning bid on our auction might materially under- or over-value the attention which we are driving. one could argue it was over-valued by the market last month and under-valued now, but it's not up to us to say. it's up to the market.
so we needed to account for that volatility in the market's perception of the value of winning our daily auction. we needed to refine our system to continue to scale fast and profitably, as we have done so far.
here's how we've done it.
founding principle: not all attention is created equal.
to use an extreme example to illustrate this point, a link visit from a crypto whale and active onchain app user with 100,000 followers on X is far more valuable than a link visit from a low-quality airdrop farmer.
so we're introducing the ability to set variable $QR reward amounts based on the user's reputation.
if the winning link of the day is a tweet, we still want to micro-incentivize airdrop farmers to check it out. they are plenty capable of a like or a retweet, and quantity of attention is arguably as or more important than quality for the purpose of getting a tweet off the ground, from zero to one, to help it reach greater quantities of quality attention organically.
but the fact of the matter is that, for all different kinds of links in aggregate, the attention of the airdrop farmer is not worth as much as that of the whale.
you can imagine the winning link points to a token, the airdrop farmer is unlikely to buy much of any (although they may), whereas one whale might buy $10,000 worth
(especially given the positive performance we've seen from many of our auction f who have bid to drive attention to their tokens to date ($noice, $helloworld, $anoncoin, $reply, etc.)... smart folks are starting to realize that our auctions offer alpha, for now at least)
logistically, to start, we'll be using neynar scores to determine user quality for farcaster users claiming via our mini app, and we'll be using wallet holdings to determine user quality for X users claiming through our website.
this will allow to continue on to the next 10x, aiming to drive 100,000 uniques to check out our winning link everyday, while remaining profitable according to the winning bids, maybe not every day, but in aggregate.
we are building the onchain attention machine.
we were not under any illusion it'd be easy.
we are focused on both quantity & quality.
it's a balance, and it requires good judgment.
so far, ours has not led us astray.
all has been above expectations.
we'll continue to bet on ourselves.
and we thank you for your support.
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