Consumption Chain Project: A Web3 Exploration of Innovation and Controversy

In recent years, many projects centered around the concept of "consumption chain" have emerged in the blockchain industry, aiming to attract more traditional internet users into the Web3 world by lowering user thresholds and simplifying operational processes. Among them, a consumer Layer project based on the TON ecosystem has quickly attracted millions of users with its innovative EVM compatibility and tokenization features.

However, as the project progresses, market feedback shows a polarized trend: on one hand, the project's technological innovation and user growth are remarkable; on the other hand, some users question its business model due to losses incurred from participating in activities. This article will use this project as an example to explore the essence of the consumption chain: is it a pioneer of industry transformation or another form of speculative tool?

1. Innovation and Achievements of the Project

Technological Breakthrough: EVM Compatibility and Ecological Integration

The biggest highlight of this project is its EVM compatibility, allowing developers to build applications in the TON ecosystem using the familiar Solidity language, significantly lowering the development threshold. At the same time, through tokenization, it converts Web2 users' points into on-chain assets, further simplifying the process for users to enter Web3. This technological integration not only brings new liquidity to the TON ecosystem but also provides seamless on-chain experiences for hundreds of millions of users.

User Growth and Ecosystem Expansion

Since the launch of the testnet, the project has attracted the attention of over 5.3 million users, with the number of paying users during the testnet activities surpassing 1 million, and on-chain transaction volume exceeding 29 million. After the mainnet launch, the number of active wallets quickly exceeded 1 million, with on-chain transaction volume exceeding 5 million, demonstrating a strong momentum of user growth. In addition, the project has also partnered with several well-known platforms, further expanding its ecological landscape.

Token Economy and Incentive Mechanisms

The total token supply of the project is 10 billion, of which 77% is allocated to the community and ecological development, including 50% for airdrops and 20% to support ecological development, etc. This incentive mechanism aims to attract user participation through airdrops and staking activities, while providing funding support for ecological projects.

2. User Experience Concerns

Complex participation rules

Although the project has attracted a large number of users through airdrop and staking activities, some users have reported that the activity rules are complicated and the participation costs are relatively high. For example, users need to stake a certain amount of assets to receive airdrop rewards, and in cases of significant market volatility, the value of the staked assets may decline sharply, resulting in actual returns for users being lower than expected.

Limitations of Tokenization Features

The tokenization feature of the project, although it lowers the barrier for users to enter Web3, has limited practical application scenarios. Currently, tokens are mainly used to pay for Gas fees and participate in on-chain activities, and have not yet formed widespread consumption scenarios. This limitation may lead users to doubt the long-term value of the project.

Insufficient ecological liquidity

Although the project aims to integrate liquidity from multiple ecosystems, the DeFi protocols and applications within its ecosystem are still in the early stages, with relatively insufficient liquidity. This fragmentation of liquidity may limit the actual experience for users, thereby impacting the project's long-term development.

III. Discussion on the Essence of the Consumption Chain

The potential for industry transformation

The core goal of the consumption chain is to lower the barriers for users through technological innovation, facilitating the migration of Web2 users to Web3. The project's EVM compatibility and tokenization features embody this concept. This compatibility not only allows for a smooth transition of existing Web2 applications into the Web3 ecosystem but also provides developers with more powerful tool support, enhancing user experience and application adoption rates. If it can effectively address issues of insufficient liquidity and limited application scenarios, the consumption chain is expected to become a catalyst for large-scale applications in the blockchain industry.

potential risks

However, the incentive mechanisms and business models behind the consumption chain can also be easily abused. Some projects may attract user funds through complex participation rules and high participation costs, ultimately causing investors to suffer losses. This phenomenon of using high returns as bait at the expense of user funds is not new in the blockchain field, especially in the absence of effective regulation, it may exacerbate irrational speculative behavior in the market and harm the interests of ordinary users.

IV. Insights from Project Cases

The double-edged sword of tokenomics design

The token economic model of the project is at the core of its controversy. Although most of the tokens are allocated to the community in an attempt to attract user participation through high incentives, historical data shows that most tokens experience significant depreciation shortly after airdrops due to selling pressure. While this model can quickly accumulate users in the short term, if it lacks actual application scenarios to support it, the value of the tokens is difficult to maintain, which may ultimately lead to a reduction in user assets.

The practical effect of technical integration

The project's technological innovations—such as EVM compatibility, tokenization, and cross-chain liquidity integration—are regarded as "industry breakthroughs," but the actual implementation results still need to be verified. For example, its claimed ecological liquidity integration relies on cross-chain bridges and incentive mechanisms, but the underlying support still appears weak. Moreover, although it has lowered the development threshold, the applications within the ecosystem remain primarily simple in function, lacking complex applications.

Community-driven sustainability challenges

The project's "fun community culture" is a highlight of its user growth; however, this model heavily relies on short-term incentives, casting doubt on user retention rates. Data shows that after the mainnet launch, the growth rate of on-chain transaction volume has slowed, indicating that user activity may decline with the end of airdrops. In contrast, a mature consumption chain needs to establish a long-term value capture mechanism, rather than relying solely on the "traffic-airdrop" cycle.

V. Future Outlook of the Consumption Chain

Return to the essence of user needs

The core of the consumption chain should be to lower the threshold for using Web3 and create real demand. In the future, it is necessary to expand application scenarios, such as using tokens for social rewards, content subscriptions, and other high-frequency consumption behaviors, forming a "points-consumption-revenue" closed loop.

Deepening the technology of liquidity integration

Currently, cross-chain liquidity integration largely relies on bridging protocols, but security and efficiency issues are prominent. In the future, it is necessary to explore more fundamental solutions, such as using ZK technology to achieve lightweight cross-chain verification, or aggregating multi-chain assets through a unified liquidity pool. At the same time, introducing real yield protocols can enhance capital utilization and avoid "false prosperity" in liquidity.

The construction of regulatory and compliance frameworks

The vision of "mass adoption" of the consumption chain must face regulatory challenges head-on. Projects need to collaborate with compliance agencies to explore the integration of on-chain identity and compliant payment channels, rather than merely relying on "regulatory arbitrage."

Conclusion

The consumer chain project reflects the typical contradictions of this track: on one hand, there is the innovative potential of technological integration and user growth, while on the other hand, there are the token economic bubbles and short-term profit-seeking risks. Its future success will depend on whether the expansion of application scenarios can evolve from simple functions to high-frequency needs such as social and financial services, whether the so-called liquidity integration can truly enhance capital efficiency, and whether its community governance can shift from being driven by short-term interests to actively co-building the ecosystem.

If a consumer chain project only uses "lowering the threshold" as a guise for "traffic harvesting," it will inevitably become a speculative tool; only by deeply binding technological innovation with user value can it secure a place in the industry transformation.