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Dapps or decentralized apps have gained a lot of popularity in recent years not only for their decentralization nature but also due to the scope of functionality that they provide. Dapps are basically normal applications that run on blockchain and employ the principles of decentralized finance and blockchain to carry out transactions and monitor the activities of all the participants on the network. Not only that, for developers, dapps offer more than one way of making a lot of money. From charging for transactions to designing subscription models, there is so much we can do with dapps. Wondering how? Here’s a quick run-through of how to make money through dapps.
How to monetize your dapp?
Monetizing your dapp is extremely easy. All you need to have is a few ideas and know how to execute them. Here are some examples of ways in which you can make money through dapps.
Transaction fees
It is one of the most prominently used ways of making money through dapps. Most of the dapps work by charging a transaction fee from the user for carrying out different operations and transactions on the blockchain. When a user buys a product or service from your decentralized app, they will have to pay a certain fee charged as a transaction fee to facilitate the operation on the blockchain. However, the developers must pay due attention to deciding the transaction fee as too high a fee can repel users from using your dapp.
Premium features
Adding premium features is also one of the most common ways of monetizing your services. Premium features can be endless, which means, there is a far-stretching scope of making money through your dapp, especially if you are offering a product or service having high consumer demand. For example, if your dapp offers services like smart contract audit, you may add premium features like detailed reports, expert assistance, etc.
Subscription models
Subscription models are another great way of making money through dapps. The special feature of using this method is that it helps developers predict the amount of revenue they will be generating from the deployment and usage of their dapp. As a developer, you can provide either a time-based subscription or service-based subscription model, or both, depending upon the purpose served by the dapp. For example, if your dapp helps projects build smart contracts, you can offer a service based subscription model by increasing the features with the premium subscriptions.
Advertising
Running advertisements on your decentralized app can be an excellent source of making money through dapps, especially if you have a strong user base. Earning through advertisements has been a very old way for websites and apps throughout the world so far. However, the concept is still new to the world of decentralized finance and dapps. As a developer, you can place ads on different sections of your dapp screen. But it is important to place the ads only on the free services that your dapp is providing to the user.
Crowdsale
Crowdale can be the most effective way to monetize your dapp if your dapp offers some innovative features and products. It works by the dapp owner issuing tokens to the people who are willing to invest in your project. While this method of making money through dapps can be extremely rewarding, the dapp owner needs to set up a power-packed marketing plan that attracts investors in just one go. Along with this, as a developer, you will need to decide on the distribution channels for your tokens.
Digital Assets
Creating your own digital assets can be a good way of not only monetizing your dapp but also for complimentary marketing. You can launch your own governance token and incentivize people to hold them and use your dapp. Additionally, you can launch your own collectibles to reward the loyal users of your dapp and create different levels of clubs based on the user engagement on the dapp. You can charge your users for inclusion in these clubs and reward them by offering some governance rights.
Conclusion
Businesses around the world are finding their unique entry points in the world of blockchain and decentralized finance. This is not just to keep up with the ongoing trends of Web3 but also to expand the scope of growth and experiment with the opportunities provided by Web3, dapps being one of them. If you have also developed a dapp recently and looking for ways to monetize them, make sure you use the ways mentioned above to make money from your dapp.
Author Bio
Ms. Tarusha Mittal, COO and Co-Founder, Dapps and UniFarm
A dynamic powerhouse and an award-winning entrepreneur, Tarusha is the visionary force behind UniFarm - a collaborative wealth creation platform that is creating a Web 3 ecosystem for projects to ease their sell pressure while increasing their utility and at the same time gain holders by providing high returns. She has been vigorously working in the blockchain and crypto space since 2012.
An experienced professional with over a decade-long experience, Tarusha has co-founded multiple technology ventures prior to founding OroPocket. She also served as the Chief Operating Officer (COO) at Cloudrino- multi-cloud management and infra platform and was amongst the founding team of ethx.co which has now been rebranded as OroPocket. She is responsible for operations and design at UniFarm and OroPocket.
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