A new token enters the cryptocurrency industry promising to drive consumer behavioral change

Cryptocurrency media outlet Decrypt has recently launched its own token, coupled with a six-figure sponsorship deal with Filecoin, the cryptocurrency of Protocol Labs. Underneath the attractive loyalty reward program is a creative and groundbreaking advertising vehicle.

Decrypt to incentivize engagement

The three-year-old crypto publisher Decrypt launched its utility token (DCPT) to incentivize readers to engage with its content — at least on the surface level. To earn DCPT, users would need to download and use the Decrypt app and wallet first.

By reading articles on the crypto media platform, readers can earn at least 3 tokens per article, while reacting or sharing the articles could mean raking in more DCPT. Decrypt suggests that this token system allows users to self-custody and have full control over when to use them.

DCPT is part of a closed-loop non-redeemable system. The token does not hold any underlying monetary value, which creates no legal, regulatory, or compliance burden for the media company. A total of 21 million tokens for the first season; however, Protocol Labs has agreed to cover the cost of gas if more tokens are created. 

According to Alanna Roazzi-Laforet, the chief revenue officer and publisher of Decrypt, the media outlet’s monthly revenue is made up of 40% sponsored content, 40% advertising revenue, and 20% from events. 

Claiming that industry monopolies like Facebook and Google have centralized the internet, Decrypt aims to combat the dying traditional media business model with its own advertising strategy.

The new-age advertising vehicle

By incentivizing engagement into rewarded action, Decrypt expects the token to help grow its audience. Roazzi-Laforet said that Decrypt wants to use the products that speak about in the market.

According to Jacob Donnelly, former managing director of CoinDesk, the crypto-centric publisher ultimately creates a habit with the reader.  

The incentive ends up being far cheaper than the value of that engaged reader — coupled with the fact that Decrypt is actually making money because they have sponsors.

With Decrypt’s recent surge in web traffic to 5 million in March, its audience has become a prime market for introducing the brand new loyalty system; over 81,000 readers have already signed up for the program so far. 

Rewards systems and loyalty programs are not new. Still, Decrypt’s take on this new advertising vehicle is different — it could have potential interoperability if the company proves that they can platform it to other publishers. 

Adam Cochran, a partner at Cinneamhain Ventures, suggested that the advertising platform could “be a Google Adsense or BuySellAds for the customer rewards program space.”

According to Cochran, Decrypt could drive consumer behavioral change beneficial to their business, although sometimes the best business decisions do not seem like much from an outsider’s perspective.