Quests
Gamified advertising where users are paid to complete specific actions or tasks
Traditional Background
Traditional marketing rarely paid users directly for attention, instead focusing on providing value through entertainment or information. The closest analogy would be paid surveys or focus groups, but these were research tools rather than acquisition strategies focused on CAC optimization.
Web3 Evolution
Quests gained significant popularity during 2022-2023, with platforms like Layer3 and Galxe leading adoption. The model incentivizes users to try products by offering rewards. However, the approach has faced criticism as many protocols found they attracted users primarily motivated by rewards rather than genuine product interest, potentially affecting long-term ROI.
Current Challenges
Quests produce unsustainable CAC and low-quality users who abandon products once rewards end. The model attracts airdrop farming detection candidates who game the system for rewards without becoming valuable long-term users. Most sophisticated protocols now recognize quests as vanity metrics that waste marketing budgets.
Market Reality
The quest model peaked and is now on the downturn as projects understand that users should derive value from the product itself, not from being paid to use it. Sustainable user acquisition requires genuine product-market fit, not financial incentives. This contrasts with positive sum advertising approaches that benefit all parties.