In this article, we analyze the DEGEN strategy in its 6th session, which comes with interesting proposals regarding the token. To do this, we will analyze each rule in this new session, what strategy it implies, and what impact it might have.

We begin with the first point, which establishes a minimum of 10K DEGEN to be locked for 3 months in order to qualify for obtaining DEGENs for tipping.

The minimum amount remains at 10K, and the main difference is that now it must be locked for 3 months in a vesting contract. Previously, it was only necessary to have it in wallets. I believe the requirement to have 10K was a smart strategy to generate demand for the token among all users who wanted to participate in this initiative. The main new feature is the requirement to lock the tokens for 3 months. The rationale is probably similar to that of L1 staking, which aims to remove a portion of the tokens from circulation for a certain period. I don't think this measure will have much impact since active tipping users were already doing this implicitly. It will affect more short-term or opportunistic users who will now have to wait several months to unlock their tokens. This aligns users who make tips with the goal of creating value for the project, as failing to do so and distributing tokens that do not generate value would deteriorate the locked capital. Therefore, it is more of a market strategy to reduce market liquidity.

I believe it would make sense to study strategies that, in addition to locking capital, can generate market liquidity and revenue for the project. If providing LPs of Ethereum and DEGEN had been proposed, this would have generated significant liquidity for the project, allowed for earning commissions that could be shared with the project, and strengthened the price floor of the token. We could even consider using Liquid Staking to capture yields from staking ETH. DeFi 2.0 explored more efficient models for providing liquidity by the projects

Receive Tip Allocation: Get a tipping allocation from the pool based on your locked amount (e.g., own 1% of the pool, receive 1% of tip allowances)

This measure is probably the most important and represents one of the most significant strategic changes for DEGEN.

It is truly interesting because we are moving away from a model entirely based on staking to calculate the token distribution budget. This fully aligns the project with its holders, giving less importance to social reputation. This should generate a significant impact on the price since an auction mechanism is established to obtain the maximum tokens, which should be reflected in the DEGEN staked metrics. This should undoubtedly impact the price, as we should see an increase in token demand, and the tokens will be locked. The supply-related events we will see at the end of the month should be delivered with a value-oriented criterion.

On the downside, there might be a loss of brand impact. It is smart to still leave some allowance for influencers to maintain that visibility. In this sense, it might be good to explore new groups of influencers to involve, not just depend on OpenRank. I think it would be reasonable for OpenRank to give some ownership to Degen for their collaboration. This measure could stop the price decline and potentially cause the price to rise again. An increase in price would impact tipping, generating more actions related to trying to receive DEGEN. It would be important to consider the opportunity cost associated with leaving capital locked if the price rises. In this sense, the LPs strategy would make sense to mitigate this capital cost.

These types of strategies were necessary because the appreciation of the token is really important in this kind of project, as they allow the creation of virtuous circles that need to be maintained. The price is the best marketing tool the token can have. If we consider DEGEN as an attention economy token, the price is probably one of the biggest drivers of attention.

The EndGame, however, should be to capitalize on this attention. It is important to leverage the human capital willing to work for the project. The so-called mercenaries should be considered human capital willing to put in effort according to the rules the project may establish. These workers do not necessarily need to become investors. However, priority should be given to those workers with greater commitment to the project.

Tip Creators: Maximum tip allowance per caster is 10k $DEGEN per day.

This measure is truly interesting because it helps mitigate the effect that whales can have in monopolizing tipping. It is important for the project to have a wide group of members actively involved in tipping

Degen needs a lot of activity related to the project, so limiting the maximum amount to pay each user makes a lot of sense. I believe it should be considered that a large investor could grant scholarships to other users, allowing them to tip with their tokens.

VALUE CREATION

However, the question that still remains unanswered by the project is how to capitalize on the entire brand and community created. This is important because efforts should be directed towards identifying different lines of value capture. It would even be interesting to determine what the tipping point or tipping strategy that users should follow to add value to the project is.

Attention Strategy

It is really important for the project to start signaling the strategies that will be rewarded and can create more value for the project. Tipping is one of the great innovations within social networks as a form of social coordination, but perhaps we need to take an additional step. In this regard, the RAIN proposal seemed to align with this and should perhaps be promoted much more. Strategies like RAIN should be rewarded so that the project can capitalize on this type of publicity.

DEGEN has the ability to coordinate social activity, and many projects want opinions and comments on their news. This can be done either by rewarding RAIN strategies or by rewarding activity in certain CHANNELS. Therefore, a proposal would be to introduce an additional ALLOWANCE factor that takes into account being SUBSCRIBED TO A CHANNEL. For example, if you subscribe to this channel and it has activity, you could earn a certain amount of DEGEN, as proposed by the channel owner, with DEGEN acting as the intermediary for these operations.

A similar strategy could also be implemented for RAIN. If you comment or engage with certain posts, then you will receive an additional ALLOWANCE. If this is incorporated into the ALLOWANCE metrics, I believe it would have an interesting impact, and DEGEN could become the main application for attention.

One of the rules for the ALLOWANCE that should be introduced is to belong to the official DEGEN channel. It is a way to capitalize the attention of the entire ecosystem in one channel.

Memecoin Strategy is probably the playbook that makes the most sense for the project at this time. This would involve competing to reach the TOP 10 Memecoins. It would mean funding initiatives with significant media impact, such as engaging an international influencer, developing an aggressive marketing strategy (e.g., appearing in Formula 1 advertising), or any other impactful actions.

Crypto Social Network Native Memecoin: It is challenging to capitalize on this community without the flexibility to modify the social network application. Developing a proprietary application would allow us to explore advertising or transactional models. This proprietary application could establish DEGEN as the payment currency, even using our own L3. It is important to gain sovereignty as a project, given that Farcaster does not seem likely to generate a token to reward the activity generated by DEGEN in the short term.

The Farcaster strategy seems oriented towards not giving ownership of the project to its users, making it difficult to truly capitalize on efforts within Warpcast. Therefore, I believe work should be done on developing our own app

Degen Ecosystem: Along these lines, we have DegenPad, which does an excellent job. These projects should allocate a portion of the startups' tokens to the DEGEN ecosystem. Mechanisms should be enabled to fund projects within DEGEN.

The project currently capitalizes at 80 million, which is a huge success. It is an excellent starting point to redefine the strategies that can take the project to new all time Highs

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