[FIP - 399] A Frax Shopping Experience, Powered by Moso

Governance Proposals Miscellaneous
1

What are Moso Shops?

Moso Shops is a platform that integrates token-based rewards into retail transactions, offering a unique way to enhance user engagement and power transactions across one’s ecosystem. The platform is designed to cater to both web2 and web3 users.

It enables users to shop at over 2000+ supported web2 retailers including Walmart, Marriott, and eBay to earn in the crypto asset of their choice. Additionally, Moso offers a custom, white-labeled shopping experience for web3 brands where users can earn up to 100% cash back or more exclusively in the ecosystem’s native token. For Galxe Shop, the rewards are partially funded by both the merchant and Galxe.

Moso has seen $500,000+ in purchases, registered 100,000+ sign-ups, and distributed $200,000+ in crypto rewards back to users.

Moso aims to work directly with Frax to provide $FXS cash-back rewards in a Frax Shop, powered By Moso.

We’re thrilled about the opportunity to integrate deeply into the Frax ecosystem as the only retail shop to earn cash back experience fully distributed in $FXS.

How are the cash-back rewards distributed?

Moso requests a token allocation from Frax to boost cash back rates, on top of the fixed cash back rates paid to Moso by the Web2 merchants for driving purchases to these retailers.

Increased rates will only sometimes be available. Boosted cash back rates of as much as 100% back in $FXS at selected merchants will be deployed from time to time allowing users to find amazing shopping deals that they otherwise would not have access to. In this scenario, the rewards are partially funded by both the merchant and Frax.

When boosted rates are not being deployed, web2 merchants distribute cash back to Moso. Moso converts the fiat cash-back to tokens on the backend for distribution to eligible users. In this scenario, the merchant fully funds the rewards.

Amazingly, users will always be earning cash back in $FXS.

photo_2024-07-30 11.10.43
photo_2024-07-30 11.10.431280×538 56.8 KB

Screenshot when boosted rates are available.

photo_2024-07-30 11.10.47
photo_2024-07-30 11.10.471280×656 72 KB

Screenshot when boosted rates are not available.

How can a white-labeled shop benefit Frax?

  • Powering Transactions:

    • Increase user engagement and value.
    • A great way to get new users onboarded to Frax and Fraxtal.

  • Fiat Integration:

    • Seamless integration of fiat currency into tokens, enhancing token utility and value. Fiat retail purchases = $FXS rewards.

  • Delayed Rewards:

    • Token lock-up during the payout period to maintain user interest.

  • Retail Audience Focus:

    • Target a retail-heavy web2 and web3 audience, catching the attention of users interested in deals and rewards.
    • Demonstrate that Frax is more than just a DeFi and L2 ecosystem.

  • Web2 User Exposure:

    • Attract new holders and users from the traditional Web2 retail space.
    • Discoverability of Frax and Fraxtal.

  • Additional Token Utility:

    • Provide various incentives, allowing users to qualify for up to 100% cash back on purchases.
    • Custom actions enable users to earn cash back and other rewards.
    • Great option for ecosystem users who already shop online. Why not have them earn and hold your native token?
    • Increase demand and liquidity.

  • Crypto Back Offers:

    • Transactions on the protocol level can qualify users for $FXS cash back, driving further engagement.
    • Frax will become the prime destination for crypto-based online shopping rewards.

Moso’s game plan and execution

Our goal is to onboard new users to the Frax ecosystem, drive visibility to Frax as the leading DeFi and L2 ecosystem, and re-engage existing users all through Moso. Throughout all of this, Frax can identify valuable, active ecosystem users with a real-world use case. This data can be leveraged in any marketing campaign Frax executes moving forward to continue to capture market share among users.

Moso plans to distribute loyalty points to users in parallel with the higher cash-back rates in $FXS. Loyalty points can be earned by users continuing to visit the Frax Shop to Earn page daily. To include additional gamification methods, points will also be distributed from purchases at retailers and for engaging with different Frax ecosystem dapps/DeFi integrations.

Moso also acts as a gateway for users to discover Frax’s best applications and DeFi integrations. Moso will work with the Frax team to understand which applications to highlight on the Frax Shop alongside retailers.

By engaging with dapps and executing an on-chain action, the user will qualify for points and cash back. Cash-back rewards by engaging with Fraxtal dapps are TBD as that discussion will take place with the application since it revolves around the kickback the dapp can give in return for the conversion. This is the perfrect fit for dapps who already have a referral program in place or are in need of a referral program.

Each shopping trip will power up to three on-chain transactions on Fraxtal for users engaging with the Frax Shop. Fraxtal would be the first L2 ecosystem to be fully integrated into Moso.

  • The user claims $FXS on Fraxtal through Moso to claim their cash back
  • The user claims points on-chain via Fraxtal as a reward on Moso
  • The user executes a transaction on a Fraxtal dapp through Moso

photo_2024-07-30 11.12.30
photo_2024-07-30 11.12.301280×629 54.8 KB

Reference the screenshot for how Space ID was included in the Galxe Shop. Moso drove $500K+ in domain purchases to Space ID.

Marketing

Frax Shop pre-launch marketing activities:

  • Pre-launch teaser tweets/Discord announcements
  • Waitlist for the Frax Shop
  • Galxe Campaign for users to secure a spot on the waitlist and get early access to the Frax Shop
  • Traction: 28,000 users joined the waitlist for Galxe Shop in just six days. Users given pre-access qualify for a limited-time pool to earn 100% back on all purchases

Frax Shop launch marketing:

  • Launch Tweet executed by Moso
  • Discord Announcement executed by Moso
  • Moso AMA, with Frax if applicable, and any participating Fraxtal dapp included in the Frax Shop

Frax Shop post-launch marketing:

  • Weekly/bi-weekly tweets promoting the Frax Shop
    • Tweets each time a new boost is deployed
    • Promotion on how users can qualify for boosts
  • Tweets each time a new merchant is added to the Shop
    • i.e. Nike, etc
  • Promotion to highlight Frax dapps being included in the Shop
  • Galxe campaigns to continue to boost awareness of the Frax Shop

Exploding Frax’s token utility

Maximize Your Rewards:

  • Token locking durations: Choose to lock your tokens for 2, 4, 6, or 9 months to access enhanced cash back rewards.
  • Spending $FXS cash back: Use your $FXS cash back at any merchant that accepts crypto or $FXS, such as:
    • Travala, Nord VPN, SPACE ID, Unstoppable Domains, and Frax ecosystem dApps included in the Shop.

Expand $FXS as a cash back option across Moso’s platforms

Grow Frax’s presence and distribution through Moso’s suite of products

Introduce $FXS as a cash back option on Moso’s Shop and chrome extension in addition to Frax’s white-label shopping page.

This expansion will further extend and diversify $FXS’s distribution network. It’s an excellent way to onboard web2 users discovering $FXS for the first time.

Example:

A user with the Moso extension who visits a Moso-supported store to shop will see the extension automatically activate, offering the ability to earn $FXS at a higher rate than other assets.

Screenshot_2024-08-22_at_8.16.18_PM
Screenshot_2024-08-22_at_8.16.18_PM1920×955 69 KB

User Experience Videos:

  • Activate Moso’s chrome extension by visiting your favorite shop and discovering boosted $FXS cash back rewards.

  • Activate $FXS cash back on Fraxtal via Moso’s Shop.

Exciting traction

$500,000+ in purchases

$200,000+ in rewards distributed to users

100,000+ sign-ups

What Moso is proposing

Package Standard
Allocation $50k+ USD
Fee 10% of the total token grant
$FXS token added to chrome extension & web browser Yes
White-label shop Yes
Customer service & maintenance Yes
$FXS cash back claiming on Fraxtal blockchain Yes
Custom development for added functionality: Lock $FXS cash back tokens for increased rates Onboard ecosystem dapps to your Shop page Spend $FXS cash back tokens with web3 merchants Yes

Moso’s background

Team members

Blake Capozza, Co-founder

  • Blake, a former Galxe team member, co-founded Moso in August 2022 to make crypto more accessible to web2 retail users. He bootstrapped Moso to $400,000 in total purchase volume and has helped deliver $85,000+ in rewards before taking on funding.
  • LinkedIn: Blake Capozza - Moso | LinkedIn

Yuhua Wang, Co-Founder & Head of Product

  • Yuhua graduated from USC in 2017 with bachelor’s and master’s degrees. Her master’s program was designed for product managers. She acquired her PM skills through that program.
  • In 2019, she joined Tripadvisor as a product manager, working on different roadmaps including user-generated content, merchandising, and subscriptions. Earlier this year, she joined Dropbox as a senior product manager, working on subscription and payment.
  • Linkedin: Yuhua W. - Dropbox | LinkedIn

Jake Margulies, Head of BD

  • Jake recently joined Moso as Head of BD after two successful years on the business team at the leading platform for building web3 communities, Galxe. During Jake’s time at Galxe, he successfully secured key partnerships with notable companies including Forbes, Linea, Optimism, Polygon, Berachain, MetaMask, and Coinbase, significantly contributing to Galxe’s growth in the community-building space and cementing its spot as the leading player.
  • LinkedIn: Jacob Margulies - Moso | LinkedIn

$2M seed round announcement: Moso Secures $2M Investment: Shaping the Future of Online Shopping with Cryptocurrency Rewards | by Moso | ShopMoso

Investors: Symbolic Capital, Dao5, Polygon, CoinList

Project Links:

The ask from Frax DAO

Moso requests a token grant from Frax of up to $50K USD in $FXS to boost cash back rates, on top of the fixed cash back rates paid to Moso by the Web2 merchants for driving purchases to these retailers.

Poll

For: Create a white-labeled Frax Shop enabling users to claim cash-back in $FXS on Fraxtal by shopping at Moso’s 2,000 supported merchants. Moso requests a token grant from Frax of up to $50K USD in $FXS to boost cash-back rates on top of the web2 merchants’ fixed cash-back rates being paid to Moso for driving purchases to these retailers.

Against: Do nothing

5 Likes
2

Is there data with your other partners that have governance tokens to support “ * A great way to get new users onboarded to Frax and Fraxtal…”

In theory, yes, this is a great way to onboard users. The opposite side of that coin is, many people will look for whatever incentives Moso provides, earn those rewards in a governance token and then sell the governance token for ETH or a centralized stablecoin adding sell pressure onto the governance token.

If you could provide onchain data to support this objective, I would really appreciate it.

2 Likes
3

Galxe Shop thus far has registered 75,000 new user sign-ups and driven $100,000+ in $GAL rewards to users.

To clarify, the rewards here are split between the merchant and Frax. When boosted rewards are deployed, the merchant and Frax split the costs. When boosted rewards are not deployed, the merchant pays out the rewards in $FXS. Users can shop and will always be rewarded in $FXS for shopping. This can make Frax the go-to destination for crypto back rewards in an untapped vertical.

Moso converts fiat into $FXS each time a shopping trip occurs. The merchant will continue to pay their fixed cash-back rate to Moso whether boosted rewards are deployed or not.

To address the question about selling pressure, the rewards are not substantial enough that it would create impactful selling pressure on the token. Additionally, it typically takes roughly 30 days for users to be distributed their rewards due to finalizing the settlement of payment with the merchant and the return period passing. This also helps combat any selling pressure.

Lastly, this is a powerful way for users to take fiat and on-ramp to $FXS via cash-back rewards.

This is a unique, excellent way to build community in a competitive space. The discoverability component that this brings to Frax and its ecosystem should not be overlooked either.

In terms of on-chain data, this is still information we’re gathering on our end.

3 Likes
4

Might want to think about rewarding users in Frax bonds. I personally don’t see a PMF for people outside of Frax governance holders to be rewarded in FXS. Just my $.02.

2 Likes
5

I agree FXS should not be the reward.

3 Likes
6

We see this as a strong use case to increase token utility, onboard new users to the Frax ecosystem, and demonstrate that Frax is more than just a DeFi ecosystem.

Distributing $FXS pumps fiat into the token, increases token holders, and establishes Frax as the destination for crypto back rewards.

Moso can create a flywheel where $FXS becomes spendable at any merchant willing to take $FXS as a payment method.

Lastly, it’s a good opportunity for get new users involved in Frax governance activities.

2 Likes
7

I think you are asking to much for a project with limited reputation and no earlier use-cases. If you would ask for 5k to do a trial run, and use the data to showcase metrics and how you are adding value to Frax I might support it. Usually cash-back rewards are equally beneficial, and for us to give away FXS for only posting transactions make no sense. Maybe if you integrate Frax as a payment currency, or in some way grow TVL on Frax it would make more sense.

Currently as the project stands it mostly benefits your project and drains our treasury. I do not see how we benefit from this proposal. Also the “up to 100% cashback” seems like a great way for you to just take the rewards for yourself and run lol.

2 Likes
8

Hi @Sharkysnakefish - thanks for your feedback.

You can refer to Galxe Shop as a use case for our white-label shopping experience, powered by Moso. Galxe Shop has seen $200,000+ in purchases, registered 75,000+ sign-ups, and driven $100,000+ in $GAL rewards back to users.

Moso Shops has driven over $500,000+ in purchases.

Cash back in $FXS distributed to users by Moso can be used at any merchant that accepts crypto or $FXS as payment, typically Web3 merchants. Moso is excited to introduce $FXS as a payment method to our supported Web3 merchants. This initiative will help maintain the transaction flywheel, from cashback rewards to payments, within the Frax ecosystem.

Feel free to read the benefits of why giving $FXS as cash back is beneficial.

We’re requesting $75K because it helps us justify the integration work and development that Moso will undertake for this operation. The $75K is also a meaningful rewards pool for users that can last up to six months.

This initiative benefits both parties and Moso is not taking the money and running. All rewards go directly back to the end user as cash back.

3 Likes
9

I love the idea of a White-Labeled shop integration. I believe this will bring more users to Frax while rewarding them! Everyone shops on-line and it’s working really good with Galxe already!

2 Likes
10

Wow, online shopping with crypto back rewards is so awesome. I believe that white-labeled shop on Frax will be successful.

2 Likes
11

This proposal is up for voting here: Snapshot