Measuring Token-Holder Engagement: Metrics And Tools

Token-holder plays a critical role in Web3 community engagement. The success of a Web3 project heavily depends on token-holder engagement.

Someone once said, “Measuring is the first step to improvement”. There are metrics & tools that help community managers measure token-holder engagement. In this blog, I will discuss those metrics & tools.

Don’t miss this read. Let’s start.

Token-Holder Engagement: Key Metrics

I have identified 6 key metrics that measure Token-holder Engagement. They are listed below.

• Active Participation Rate

  Active participation rate measures the percentage of participating Token-holders. The active participation rate in community & project-related activities can be measured. This metric is a direct indicator of the token-holder’s community involvement.

  Active Participation Rate = (Active participants / Total token-holders) * 100

• Voting Turnout Rate

  How many token-holders turn out to vote? The voting turnout rate is the percentage of token-holders who vote on governance decisions. This metric reflects the token-holder’s interest in the governance & decision-making process. The voting frequency is also a defining metric.

  Voting Turnout Rate = (Voted token-holders / Total eligible token-holders ) * 100

• Proposal Engagement Rate

  The proposal engagement rate measures the number of proposals discussed, reviewed & acted upon. This metric reflects the power of community response to governance proposals.

  Proposal Engagement Rate = ( Token-holders engaged with proposal / Total token-holders ) * 100

• Staking Participation Rate

  Verifying & validating the transactions on BlockChain is called Staking. The staking rate measures token-holders who own tokens by validating BlockChain transactions. It also helps differentiate Staking & Non-Staking holders. The staking rate reflects the commitment to long-term belief.

  Staking Participation Rate = ( Token-holder staking tokens / Total token-holders ) * 100

• Social Media Engagement Rate

  Token-holder activity in social media like Twitter & Discord can be measured. Views, likes, comments & followers on a social media post are a direct indicator of engagement. Sentiment analysis can be done to capture community mood.

  Social Media Engagement Rate = ( Total engagement / Total impressions ) * 100

• On-Chain Engagement Rate

  On-chain engagement measures the token-holder transaction volume & frequency on the BlockChain. This metric also measures unique Token-holder interactions on the BlockChain. Finally, it helps measure overall activity on-chain in real-world scenarios.

  On-Chain Engagement Rate = ( Active on-chain participants / Total Token-holder ) * 100

Token-Holder Engagement: Key Measuring Tools

This section describes the key tools involved in measuring Token Holder engagement.

• Dune

  Dune is a data analytics platform for measuring token-holder engagement on Chain. Dune directly queries BlockChain and provides you with engagement insights. It tracks on-chain metrics like active addresses, successful transactions & voter turnouts.

  Key reveals: Active addresses, Voter turnouts

• Snapshot

  Snapshot is a decentralized voting system for DAOs. It helps measure token-holder engagement in governance proposals. Snapshot also measures participation rate while voting on important decisions.

  Key reveals: Governance engagement, Participation rate

• Nansen

  Nansen is another BlockChain Analytics platform just like Dune. Nansen helps measure Crypto wallet behaviors. This analytics platform also helps track token & whale movements. In case you are not aware, a crypto whale is a user who holds a significant amount of Cryptocurrency.

  Key reveals: Wallet behaviors, token & whale movements

• Token Terminal

  Token Terminal is an analytics platform focusing on evaluating financial metrics & providing financial insights into Crypto assets. This platform helps evaluate crypto project revenue.

  Key reveals: Financial insights, Project Revenue

• MetricsDAO

  Metrics DAO is a community-driven analytics platform for Web3. This platform provides crowdsourced insights for measuring token-holder engagement. It not only helps measure metrics but also identifies the latest trends among token-holders.

  Key reveals: Crowdsourced insights, latest trends

• Discord / Telegram Bots

  Discord & Telegram bots help track Token-holder activity. These bots help track sentiments within the token-holder community. These bots trigger alerts when a spike in community activity is detected.

  Key reveals: Sentiments, Sudden spikes

  You can find here the best practices for building Strong Token-holder relationships.

How can BlockSurvey help?

Here let’s find how a data collection tool like BlockSurvey can help measure token-holder engagement. Below are a few methods to measure token-holder engagement while running a survey.

• Survey Response & Completion Rates are clear measures of Token-holder engagement.
• Survey response data are analysed using AI to capture token-holder sentiment.
• Token-Gating feature helps you measure how many Token-holders participated in your survey.

Conclusion

Why not start monitoring your token-holder engagement using the discussed tools. Be open & refine your process to improve token-holder engagement. Here is what Stanley Thomas, an NFT analyst has to say on how to measure Web3 community management success.

Start creating engagement Surveys using BlockSurvey. Measure survey response & completion rates. Find token-holder sentiments with AI data analytics. Measure the Token-holder’s survey participation with the help of the Token-Gating feature. There is a lot more to it. Start experiencing BlockSurvey today & improve token-holder engagement.