ExpFaucet is an android mobile app that pays users in Exp coins for viewing ads and, in the very near future, for completing tasks. ExpFaucet is one of the projects funded by Expanse Grants system. The app was built by our community member @SpeedRunner using React Native on frontend and Node.js on backend.
Why does Expanse need this app?
Because ExpFaucet can bring more attention and new users into the Exp network. Every new user needs to have an Expanse address to get paid, so as more users will use this app, more new wallets will be created and more transactions will be posted. The growth of the Exp network will happen as per Metcalfe’s law. Metcalfe’s law states the effect of a telecommunications network is proportional to the square of the number of connected users of the system (n2). More transactions on Expanse = more value for Expanse coin.
Besides transactions and network, every blockchain project has an exchange where anyone can buy or sell project coins. This matters in the long run. Low trading volume and low demand has a negative effect on the coin value. ExpFaucet will buy some Exp every day/week to pay this coins to users. In this way, it creates a buy demand and on the other hand some users that received this coins, will sell it. That’s how trading volume is created along with a gradual rise in demand.
How does ExpFaucet work?
Every 30 minutes, users can claim some XP (which is an in-app token) for viewing ad. The value of XP is attached to that of USD, not Exp. If Expanse coins lose its value (rate goes down), users will get more coins and vice versa. After user creates a withdrawal request – he essentially “freezes” his XP tokens with the current Exp value. All withdrawals are processed every 3 days which makes for reducing tx fee and increasing rewards for users. This can be changed after more testing data emerges. The app also has a leader board.
After finishing tasks section and fixing all bugs, the economic model of this app will be changed.
Maybe a new token will be created on the Expanse blockchain. Every 2 weeks, the app will buy required amount of tokens to pay users, so even if all users will sell their rewards (such an event is very unlikely) token price will still be stable. Some similar apps in the market are using another strategy – they mint tokens instead of buying and that is the reason why app token value always goes down. We do not subscribe to this approach. Token will be traded on the Expex exchange. It will increase number of Expanse transactions and demand of Expex.
The way in which ETH and some other blockchain projects post transparency reports every quarter. This consolidates its reputation and helps the project stay honest and true to its founding principles. Every month, we will be posting a detailed report outlining ExpFaucet earnings, spends and developments. This will also include details like how much Exp was paid to users (meaning, how much Exp was bought on the exchange by the app), server costs and app earnings.
We believe that this app can be a great way to attract a huge community around it which eventually will boost the reputation of the expanse community and generate demand for the Exp tokens.