4. Business Model

4.1. Monetization

Although there are many existing Ethereum wallets that offer non-custodial cryptocurrency storage, an indisputable evidence suggests that monetization is a difficult topic for all. Introducing monetization with homogeneous products is tough, as consumers always have an option to switch and use a product that is free of charge, if other features are the same.

Blank wallet has an advantage over existing competitors, since it offers features that the market hasn’t seen before: built-in privacy. With a clear added value, we expect users to be comfortable with paying minimal fees in exchange for their untouchable privacy.

Initially, Blank Wallet will charge a 0.25% withdrawal fee for all transactions taken through the Blank privacy pool. Our research shows this to be an optimal number, but it may increase or decrease based on user feedback.

Other features such as regular wallet usage without privacy are going to be free.

4.2. Growth Model

Due to the way Blank wallet is built, every added user increases the privacy and untraceability for further transactions. Therefore, because a large user base is key for the success of Blank, we have built the user acquisition strategy systematically and sustainably to address any potential concerns. This section explores how the four main pillars of our user acquisition path - Affiliate Programs, Influencer Marketing, Community Angels, and Alternative Reward Systems - are expected to gradually drive users to the platform.

4.2.1. Affiliate and Referral Programs

We have seen the affiliate and referral schemes prove to be one of the most successful market penetration strategies over the years - both in regards to DeFi solutions and the wider cryptocurrency ecosystem. Namely, the DeFi space has seen a surge in popularity largely thanks to carefully planned and implemented affiliate campaigns.

For example, affiliates of the cryptocurrency derivatives exchange ByBit make referral earnings not only from people they refer directly but also generations of people referred by their referrals. Affiliates at the third level get 10% off trading fees, and extremely successful affiliates that bring in high-volume traders get commissions that could reach 35%.

Another fruitful referral program was executed by the Ledger cryptocurrency wallet. Ledger affiliates get 10% commission for every 10 dollars of product sold, which acts as a direct incentive to promote products - especially for those that have a following or great reach in the crypto community.

The instantaneous jump in Changelly’s monthly users and becoming a dominant player in the crypto exchange market could also be largely attributed to its affiliate program. Compared to similar programs, Changelly was unique in the delivery of round-the-clock live support, transparent rates, and easy-to-use platform, looking from the lenses of the user first. Such a customer-focused, seemingly flawless onboarding process with continuous support structure later landed major media channels like Coin Gecko and CoinTelegraph to support the program.

As we acknowledge the success of the aforementioned referral strategies, Blank will aim to combine these best practices that have clearly proven to be effective in delivering user growth. After the launch, Blank’s Affiliate and Referral Program will swiftly follow and can be described in 3 easy steps:

  1. We will vet and approach influencers and media channels (such as popular blogs) that have high and active following and an unblemished reputation in the crypto community;

  2. The influencers and other selected affiliate partners will promote Blank on their platforms to spread awareness and refer their audience to join;

  3. Affiliates will be compensated based on their performance: 30% of the fees paid by referred users will be transferred to the influencers in BLANK tokens as a reward.

4.2.2. Influencer Marketing

We believe that, when executed strategically and attentively, influencer marketing is still a premier way to build a well-known and respected brand in the crypto space - and 89% of marketers agree. We will execute the influencer marketing strategy by inviting a select few to become Blank’s Brand Ambassadors - the long-lasting partners raising awareness about our news and initiatives.

Besides directly impacting the user growth, Blank expects influencer marketing to help instill trust in the product by associating our brand with that of respected opinion leaders in the community. This is why choosing the right-minded people to work with coupled with supreme reputation is crucial when choosing our influencer partners. After all, failure to do so may have detrimental effects and make the platform less trustworthy to join.

For instance, cryptocurrency derivatives exchange ByBit is known for their successful influencer marketing campaign. Out of 7.49% of traffic that came from social channels, 80% is attributed to Youtube, where most of it is likely influencer marketing or strong affiliate partners.

Thus, by associating their personal brand with that of ours, influencers will become brand ambassadors and a valuable asset for Blank long-term. Such a relationship would enable us to not only benefit from influencer referrals, but also gain the trust of the targeted audience we want to reach.

4.2.3. Blank Community Angels

The Community Angels will be used to further spread the word about Blank across social media, forums, and discussion channels.

Angels will act as an extension of our team in the community and take on several responsibilities. For example, they will answer questions of Blank’s users on major forums, explain the new features or updates on their social media accounts or administer official Blank’s social media groups. As a compensation for their time and effort, Community Angels will receive BLANK tokens as a fixed fee.

We are aware of the potential risks posed by such a program - lack of defined role, criteria of representatives and excessive behavior or spam. To prevent these risks with the Blank Community Angels, we will carefully monitor their activities to be in line with our values and run audits periodically to ensure all rules are adhered to. There will also be an opportunity to report any misuse of the Angel’s perks directly to us.

4.2.4. Unique Reward System

To further cement Blank as a go-to privacy transaction partner, we will explore unconventional ways to grow our user base. Blank’s Reward System will include a mixture of incentive programs, crypto airdrops, and giveaways for those inviting users.

As discussed, we put user growth near the top of our priority list as it directly improves the functionality and privacy using smart contracts. Thus, to maximize the incentives to refer others to join Blank, existing wallet users will be rewarded from the sign-up of their referred new users.