An analysis of the incentive design and growth strategies of NFT marketplaces

Abstract

With the vigorous development of the digital economy, the NFT (non-homogeneous token) market, as an innovative application of blockchain technology, is gradually becoming a new hot spot in the field of digital assets. However, the rapid growth of the NFT market also faces many challenges, the most prominent of which is attracting and retaining users. In this context, the research on incentive design and growth strategy is critical. Through an in-depth analysis of the NFT market's incentive design and growth strategy, we can reveal the logic and motivation behind it and provide a scientific basis and effective guidance for the platform's user growth and market development. Therefore, this study aims to explore the incentive design and growth strategy of the NFT market to provide useful reference and inspiration for the healthy development of the industry. This paper profoundly studies the fundamental economic models of different NFT marketplaces from multiple dimensions. In addition to focusing on economic indicators such as the platform's revenue sources, fee structure, and incentive mechanism, we also analyzed factors such as the platform's operating model, user composition, and market positioning. By comparing representative platforms such as LooksRare, X2Y2, and Blur, we statistically reveal their innovations and differences in user growth strategies and explore the impact of these strategies on user growth and engagement. This paper uses the VAR model for in-depth data analysis, and the relationship between the growth strategies of different NFT marketplaces and the number of users and trading volume is discussed. Through quantitative analysis, we found that implementing LooksRare's trading strategy had a significant impact on the platform's user growth and trading volume. However, the pledge strategy of X2Y2 has no significant impact on the platform's user growth and transaction volume. This paper reveals the specific effects of different strategies regarding user growth and transaction volume. It provides specific guidance and suggestions for the future development of user growth strategies for the platform.