Published in: Blog

Will the Tap-to-earn Trend last?

Author Duy

Published on: September 10, 2024

Tap-to-earn was once a sensation in the cryptocurrency community, attracting many users with its straightforward and rewarding mechanics. But the question remains: will this trend continue to thrive?

Table of Contents

How Did Tap-to-Earn Begin?

Tap-to-earn (T2E) originated as a smaller branch of GameFi—a blend of “gaming” and “finance.” It was inspired by the play-to-earn (P2E) model, where players earn real-world value, such as digital assets or cryptocurrencies, through gameplay.

Typically, crypto games within the GameFi sector have similar mechanics to traditional games but with an added play-to-earn element, which varies depending on the project. However, developing a GameFi project can require substantial resources, and a failure to succeed often results in significant losses.

To mitigate these risks, GameFi developers began shifting towards simpler games, aiming to reduce development costs while managing risk. Among these ideas, Tap-to-earn emerged as a promising option.

With extremely simple gameplay—tapping the screen—and a clear scoring system where more taps equal higher points, Tap-to-earn created a wave of FOMO in the crypto community, especially with the promise of potential airdrops.

Projects That Once Stirred the Tap-to-Earn Market

The Pioneer

Several projects made a significant impact, sparking a wave of Tap-to-Earn games on Telegram. Many developers launched their own T2E games, hoping to ride this trend, though not all achieved success.

The project that truly put Tap-to-Earn on the map was Notcoin. Contrary to its slogan, “Probably nothing,” the Notcoin team took extensive steps to develop the Notcoin tapping game and fostered community engagement through various activities.

After the Notcoin tapping game concluded with an airdrop for players, the team didn’t let the project fade like many others. Instead, they continued to develop new games to capitalize on their massive user base, ensuring the longevity of their platform beyond a single airdrop event.

We have published an in-depth analysis of the Notcoin project and its strategy. You can check it out to learn more about the future of the project.

The Successor

Following the success of Notcoin, many tap-to-earn games were launched, but if there’s one that truly lived up to the legacy of Notcoin, it would be DOGS.

DOGS Community, a meme coin primarily active on Telegram, initially had a simple airdrop system. The number of $DOGS tokens users received was based on their Telegram account creation date and activity level, which generated significant interest and participation.

To accommodate newer Telegram accounts, the project introduced a Tap-to-Earn game, allowing participants to earn additional rewards. This move was met with great enthusiasm, especially since Tap-to-Earn games were extremely popular at the time.

As a result, the project airdropped rewards ranging from $30 to $50 per wallet—a generous payout that further boosted the project’s success.

The Future of Tap-to-Earn

Key Factors Determining Success or Failure

User Engagement and Retention: T2E games must balance simplicity with continuous innovation to keep users engaged. Features like daily bonuses, referrals, and updates are essential.
Reward Systems: Rewards should be varied and fair, including cryptocurrency and tangible benefits. Balancing in-game earnings with reward value is crucial.
Monetization Strategies: Sustainable monetization through ads, microtransactions, and brand partnerships is key, but it shouldn’t harm the user experience.
Security and Transparency: Trust is vital. Ensuring data security and transparent reward distribution builds user trust. Regular audits and clear communication help.
Community and Social Features: Strong communities enhance loyalty. Social features like leaderboards and events foster a sense of belonging. Leveraging platforms like Telegram can boost engagement.
Adaptability and Innovation: T2E games must adapt to changing preferences and tech advancements. New features and genres keep them relevant and appealing.

Current Challenges

Lack of Innovation

Both Notcoin and the DOGS Community have chosen Telegram as the primary platform for their projects, and many future Tap-to-earn projects are likely to follow suit. There are several reasons for this choice:

Telegram has a large user base: Most crypto projects have Telegram channels to communicate with users. With such a large number of users, Tap-to-play projects can easily reach new users, especially those who are crypto enthusiasts.
Supports bot integration: Telegram supports bots, which help automate processes, making it easy and quick for users to interact.
Helps build communities: Building a strong community is easier and more manageable for development teams on Telegram.
Easy to use: It doesn’t require much effort for users to create an account and join.

Despite these advantages of building Tap-to-earn games on Telegram, these games often lack uniqueness. They typically involve simple screen-tapping gameplay, completing tasks (if any), and then waiting for airdrops. This can quickly lead to user boredom, with users only sticking around until they receive their airdrops before abandoning the project.

User Retention Issues

Tap-to-Earn games, like many crypto projects, struggle to retain users after airdrop campaigns. Once the rewards are claimed, many users quickly lose interest due to a lack of long-term engagement.

For sustained growth, it’s essential to offer ongoing benefits to existing users and compelling incentives for new ones. Unlike DeFi and GameFi, which often benefited early users through Ponzi-like dynamics, Tap-to-Earn is more individual-focused, lacking mechanisms for newer users to contribute to earlier ones.

While referral systems can boost rewards, they don’t create the same hype or excitement, limiting user motivation and participation.

Will Tap-to-Earn Continue to Thrive?

Ponzinomic as a Key Factor

Tap-to-Earn (T2E) has attracted new users, including non-crypto participants on platforms like Telegram, but the low rewards often fail to hold their attention. Many users focus solely on earning airdrops without investing much into the system.

Previous trends like GameFi followed a more robust model:

High rewards + Ponzinomic elements → Attract new users → Encourage investment → Increase rewards across the ecosystem.
T2E only achieves rewards → attracting new users → higher rewards for individual players.

Looking back at DeFi (2018), GameFi (2020-2021), and M2E (late 2021), these trends combined two key factors:

Practical appeal: DEFI (finance), GameFi (gaming), and M2E (fitness) provided users with tangible activities, offering more purpose than merely grinding for rewards.
Ponzinomic elements: DeFi had staking and yield farming, GameFi used NFTs and in-game currencies, while M2E had similar mechanisms that drove engagement.

At present, T2E lacks a gameplay element that could ignite user growth and FOMO.

The Future of Tap-to-Earn

Past trends thrived by offering high rewards, transparency, and clear economic models, attracting users who saw immediate earning potential and opportunities for speculation. T2E, by contrast, relies heavily on the promise of “free money” from airdrops, which alone isn’t compelling enough—especially with no clear backing, investment, or strong team behind it. Additionally, low rewards make it difficult for users without tools to participate meaningfully.

For T2E to succeed, introducing Ponzinomic elements and higher rewards could create the FOMO necessary to attract both crypto and non-crypto users.

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