Let me try to “organize” this proposal…
The idea is to stimulate:
A) To onboard new users (awareness, willingness to change (free additional features/benefits), easy onboarding tools, and incentives).
B) To keep new and existing users active (incentives, and means to use “search earned” PRE for consumptive purposes).
I fully agree with the objective and I do like some of the ideas/proposals mentioned here.
I think we all agree that the team should pay attention to easier onboarding, (awareness) marketing, and focus on more features/benefits either paid or unpaid such as AI search results, community packages, and individual preference settings… but for now, I want to discuss the role of the PRE token into more detail as an incentive and mean to achieve objectives A and B.
Let’s first look at the current PRE search rewards “system”.
- Reward: 0.1 PRE per search (with a maximum of 25 rewarded searches per day).
- Average daily search per regular user (assumption): 5 searches (Presearch this number for “G” and you will find 3-4 searches as average)
- Average daily PRE reward per user: 0.5 PRE (5 times 0.1).
- Withdrawal threshold: 1,000 PRE.
- Affiliate rewards: 25 PRE for both new users and affiliates.
- Average time to reach threshold: 1,950 days (975/0.5).
- Current PRE price: $0.035
- Withdrawal dollar reward value: $35
- Total daily searches: 4M+
- Users getting PRE search rewards vs “non-rewarded” users (assumption): 1/3 vs 2/3
- (Ultimately) Rewardable daily searches percentage (assumption): 25% (lower than 1/3th as users will stop, never reach the threshold, or violate the TOS with PRE revokes)
- Daily PRE reservation for future search withdrawals (after reaching the threshold): 100K PRE (4M x 25% x 0.1 PRE).
So, it takes the average user over 5 years to reach the threshold before he can actually withdraw and sell the 1,000 PRE on the open market (getting about $30 in cash taking into account annoying withdrawal, deposit (to CEX), trade fees, and fiat-off-ramp fees).
And it will currently cost “the project” an estimated 100K PRE per day for future “withdrawal” pay-outs.
For most users hardly interesting and probably one of the reasons why only 1/3 of current Presearch users take the effort and time to log in to their account to acquire search rewards (also some users did switch off the reward feature, and/or didn’t register at all).
I think we can conclude that the majority (2/3 of users) don’t care about the current PRE search rewards.
So, how can we make the current PRE search rewards system more interesting for the “regular user”?
Some possible answers…
A) Increase PRE rewards per search.
B) Reward users with PRE for other activities (rewards by Presearch itself).
C) Reward users with PRE for other activities (rewards by advertisers/sponsors).
D) Allow earned PRE rewards to pay for additional features.
E) Threshold. Allow users to combine “all” earned rewards to achieve the threshold faster.
Ad A) Increase PRE rewards per search
First note that increasing the 25 searches maximum per day won’t have any effect on the average “regular” user who only does 5 searches a day (and who will only incidentally hit the 25+ searches a day).
Of course, if there is a “budget” to increase the PRE search reward per search, it’s an “easy” solution.
But in reality, in the end… these PRE rewards have to be paid in some way. Especially, from advertising, (traffic) referral, or licensing income (communities, AI results, etc.).
Plus we want regular users to stay active, and don’t want to reward “token farmers” (and the risk is of course that… the higher the rewards… the more attractive for token farmers).
So far, there were 2 “proposed re-distribution models”:
- Staking model. The more PRE a user stakes, the higher the relative search rewards.
- PRE Search rewards based on “congruent” and longer-term searches. The longer the user is using Presearch “constantly” in a specific time period, the more search rewards.
Some remarks for each “model”…
Model 1 Staking Model
We know that the team has mentioned this option before (and is probably working it out and developing it in the background).
The idea is that users who also stake PRE are more committed and have a stronger interest in the project in comparison to “farmers”.
However, I do think that “farmers” will still stay active, and will see even more “opportunities” as the rewards will increase.
One way to solve this… is to add the option to “revoke” all PRE from users who violated the TOS (both earned and staked PRE)
But revoking staked (and earlier bought PRE on the open market) will be seen as “stealing”, and will lead to “negative publicity” on social media.
So, for me, it’s just a “partial and insufficient” solution as (probably) most of the regular users don’t want to buy and stake PRE (especially as long as involves many steps to acquire PRE and the associated gas fees and transaction costs are relatively high).
Also, as current Node operators will “compare” the PRE search rewards with the Node rewards… and (especially if the PRE price “tanks”)… it can start an unwanted move from node operators who will stop and switch to “search rewards”.
Model 2 PRE rewards based on congruent usage over time
At first sight, it sounds fair to reward long-term and constant Presearch users above new and infrequent users.
But for both Model 1 and 2… if the total PRE rewards budget is a “fixed” amount for the whole group of searchers, it’s a re-distribution where new users will relatively get (even) less PRE rewards (at the start) than nowadays… with as result that regular (infrequent and non-staking) users will have to wait longer before they will finally reach the threshold.
So, not a real incentive for starting to try out Presearch, but only an incentive for consistent users or stakers.
Also, rewarding “congruent” usage, will lead to “unwanted and unnecessary” searches by users who just search to “protect” their rewards but without any “real” search request.
Ad B) Reward users with PRE for other “community” activities (rewards paid by Presearch)
For now, the only other option (besides search rewards) to earn PRE is via referrals (25 PRE affiliate rewards) or as a node operator.
So, of course, you can reward referrers/affiliates and node operators with higher search rewards…
Instead of Model 1 PRE Staking above where a possible shift may happen from node operators to search… this works out the other way… node operators will get more PRE search rewards (but don’t have to take PRE from their nodes staked).
But this is not my first idea, I’m looking for new community activities.
Think about…
- Reward users for “search reviews”. Just look at what Timpi is aiming for… to crawl and index the “web”, reviewers of search results are being paid in tokens.
- Reward users for crawling (not indexing) from their own devices (or VPS). Look at what Timpi is aiming for where nodes for showing search results are “isolated” from “crawling” (node) activities.
- Reward users for specific (click) actions. If a user clicks on a specific search results URL (or ad link), the user will get more PRE. For example, if a user uses the portal to visit a commercial website such as Amazon or Booking. (Visit Amazon today via the Presearch Portal and get X PRE). Or… Presearch “comeback” campaign. Send an email to the “inactive” user and reward them with additional PRE rewards for a specific period. Just any comparable actions as below that advertisers can do, but now the “advertiser” is Presearch itself.
- Any other activity for the community that should be rewarded with PRE. For example, Social Media rewards (as the contribution to this Forum).
Ad C) Reward users with PRE for other activities (rewards by advertisers/sponsors).
There are many options where advertisers can (and will) pay for specific or general searches. Just to name a few ideas:
- Presearch Search Engine (or Portal) sponsorship. Use Presearch today, and get double (or X) PRE rewards. (For example, in combo with the homepage takeover ad).
- Specific click rewards. If a user clicks on a specific search results URL, promoted search query, or ad link, the user will get more PRE. (The ultimate form is a “PRE cash back” if the user actually buys something from a “sponsor”).
- Earn PRE for watching video ads, doing sponsor reviews, etc.
The options are “endless”, as an additional advantage… it takes real user “activity” and “farming bots” won’t “notice” the possibility to earn additional PRE rewards.
Ad D) Allow earned PRE rewards to pay for additional features.
Think about (some already mentioned in this chat)…
- AI search results.
- Access to communities (packages).
- Consumptive keyword staking.
- Partner with other crypto projects and use PRE for micro-payments.
- Ad-free search results.
Ad E) Threshold. Allow users to combine “all” earned rewards to achieve the threshold faster.
For now, I’m not a proponent to lower the threshold (just specifically for earned search and affiliate rewards), but make it possible to combine the balance with (all upcoming) other PRE rewards as for node operator rewards.
Or introduce a lower threshold specifically for node operators such that node operators can increase their node stake faster with earned search rewards.
So, to conclude…
Before introducing incentives such as PRE “search” staking and rewarding loyal (congruent) users, and by “re-distributing the PRE search rewards from new users to active existing users”… hence, making it “less attractive” for new users, I think the focus should be more on making it possible for (new and current) users to acquire more PRE (by doing additional community and sponsored activities), and to make it possible for all users to “spend” their earned PRE for additional features/benefits.