The Dual Nature of Consumption Chain Projects: Innovation Potential and Coexisting Risks

In recent years, a large number of projects centered around the concept of "consumer chains" have emerged in the blockchain industry, aiming to attract more Web2 users into the Web3 world by simplifying operational processes and lowering barriers to entry. As the first consumer Layer project in the TON ecosystem, DuckChain quickly attracted the attention of millions of users with its EVM compatibility and Telegram Star tokenization features.

However, as the project progresses, the market reaction shows a clear polarization: on one hand, DuckChain's technological innovation and user growth are remarkable; on the other hand, some users question its business model due to being "rug pulled" in the activities they participated in. This article will take DuckChain as an example to explore the essence of the consumption chain: does it represent the vanguard of industry transformation, or is it merely another tool for reshuffling and harvesting investors?

1. The Innovations and Achievements of DuckChain

Technical Breakthrough: EVM Compatibility and Telegram Ecosystem Integration

The biggest highlight of DuckChain is its EVM compatibility, which allows developers to build applications in the TON ecosystem using the familiar Solidity language, greatly lowering the development threshold. At the same time, DuckChain utilizes the Telegram Star tokenization feature to convert Web2 user 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 Telegram's one billion users with a seamless on-chain experience.

User Growth and Ecosystem Expansion

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

Token Economics and Incentive Mechanisms

The total supply of DuckChain's token DUCK is 10 billion, of which 77% is allocated to community and ecological development, including 50% for airdrops and 20% to support ecological development, among others. This incentive mechanism aims to attract user participation through airdrops and staking activities, while providing financial support for ecological projects.

II. Behind Users Being "Anti-Pumped": Concerns of the Consumption Chain

The rules of the event are complex, and the cost for users to participate is high.

Despite DuckChain attracting a large number of users through airdrops and staking activities, some users have reported that the activity rules are complex and the participation costs are high. For example, users need to stake certain assets to receive airdrop rewards, and in the case of significant market fluctuations, the value of the staked assets may decrease substantially, resulting in actual returns for users being lower than expected. This design has been questioned by some users as "disguised harvesting."

Limitations of Telegram Star Tokenization

The Telegram Star tokenization feature of DuckChain, while lowering the barrier for users to enter Web3, has limited practical application scenarios. Currently, Telegram Star is mainly used to pay for Gas fees and participate in on-chain activities, and has not yet formed widespread consumption scenarios. This limitation may lead users to doubt the long-term value of the project.

Insufficient ecosystem liquidity

Although DuckChain is committed to integrating liquidity across multiple ecosystems, the DeFi protocols and applications within its ecosystem are still in the early stages, with relatively insufficient liquidity. This liquidity fragmentation issue may limit users' actual experience and, in turn, affect the long-term development of the project.

3. The Essence of the Consumption Chain: Industry Transformation or Shell Game to Harvest Retail Investors?

The potential for industry transformation

The core goal of the consumption chain is to lower the user threshold through technological innovation and promote the migration of Web2 users to Web3. The EVM compatibility of DuckChain and the tokenization feature of Telegram Star are precisely embodiments of 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 tools to enhance user experience and application adoption rates. If the issues of insufficient liquidity and limited application scenarios can be effectively addressed, the consumption chain is expected to become a catalyst for large-scale applications in the blockchain industry, promoting the comprehensive development of the decentralized economy.

The risk of being harvested

However, the incentive mechanisms and business models behind the consumption chain are also prone to abuse. Some projects may attract user investment through complex participation rules and high entry costs, ultimately causing losses for investors. This phenomenon of "cutting leeks"—enticing with high returns at the expense of user funds—is not new in the blockchain field, especially in the absence of effective regulation, which may exacerbate irrational speculative behavior in the market and harm the interests of ordinary users. Therefore, ensuring the transparency, sustainability, and protection of user rights within the consumption chain mechanism, building user trust, and ensuring the healthy development of the market have become key challenges for its future development.

4. Insights from the DuckChain Case: Dilemmas and Solutions of the Consumption Chain

The double-edged sword of tokenomics design

The tokenomics model of DuckChain is at the heart of its controversy. Although it allocates most of its tokens to the community in an attempt to attract user participation through high incentives, historical airdrop data shows that over 88% of the tokens depreciated significantly within three months after the airdrop due to selling pressure. This model can quickly accumulate users in the short term, but without practical application scenarios to support it, the token value is difficult to maintain, ultimately leading to users being 'rug pulled' due to asset depreciation. For example, while users in the DuckChain testnet activities deposited a large amount of Telegram Stars, the usage scenarios after tokenization were limited to paying for Gas fees and staking, failing to form a consumption closed loop.

The distinction between virtual and real in technology integration

The technological innovation of DuckChain, although packaged as "industry revolution," still needs to be verified for its actual implementation effects. For example, its claimed "integration of multi-ecosystem liquidity" relies on cross-chain bridges and incentive mechanisms, but the underlying support is weak. Moreover, although the new architecture has lowered the development threshold, the DApps within the ecosystem are still mainly focused on Memes and simple GameFi, lacking complex applications.

Community-driven sustainability challenges

DuckChain's "fun community culture" is a highlight of its user growth, exemplified by the design of gamified interactions through DuckChainBot that attract millions of users. However, this model heavily relies on short-term incentives, raising concerns about user retention. Data shows that while there were many user deposits during its testnet phase, the growth rate of on-chain transaction volume slowed down after the mainnet launch, indicating that user activity may decline once the airdrop ends. In contrast, a mature consumption chain needs to establish long-term value capture mechanisms, such as transforming user behavior into on-chain productivity through DeFi protocols, rather than solely relying on a "traffic-airdrop" cycle.

5. The Future of the Consumption Chain: From "Traffic Games" to "Value Networks"

Return to the essence of user needs

The core proposition of the consumption chain should be to lower the entry barrier for Web3 usage and create real demand. DuckChain's attempt to enable users to "seamlessly go on-chain" through the tokenization of Telegram Stars is significant, but if it only stays at the level of paying Gas fees, it is no different from Web2 point systems. In the future, it is necessary to expand application scenarios, such as using Stars for social rewards, content subscriptions, and other high-frequency consumption behaviors, forming a "points-consumption-revenue" closed loop.

Technical Deepening of Liquidity Integration

Current cross-chain liquidity integration heavily relies on bridging protocols, but issues of security and efficiency are prominent. If consumer chain projects want to truly break the ecological isolation, they need to explore more fundamental solutions, such as using ZK technology to achieve lightweight cross-chain verification, or aggregating multi-chain assets through unified liquidity pools. At the same time, introducing real yield protocols (such as lending and derivatives) can enhance capital utilization and avoid "false prosperity" of liquidity.

Construction of Regulatory and Compliance Framework

The "mass adoption" vision of the consumption chain needs to confront regulatory challenges. For example, the tokenization of points as a fiat currency entry may involve KYC/AML issues, and the financial attributes of tokenized points may also fall under securities regulation. Project parties need to collaborate with compliance agencies to explore the integration of on-chain identity and compliant payment channels, rather than solely relying on "regulatory arbitrage."

6. Conclusion

The case of DuckChain reflects a typical contradiction in the consumer chain track: on one hand, there is the innovative potential of technological integration and user growth, while on the other hand, there are the risks of token economic bubbles and short-term profit-seeking. Its future success will depend on whether the expansion of application scenarios can evolve from simple memes and games to high-frequency demands in social and financial sectors, whether the so-called liquidity cross-chain integration can truly enhance capital efficiency rather than just remaining on the surface of accounting data, and whether its community governance can shift from the short-term interest-driven "wool-pulling party" to active ecological co-builders participating in long-term value distribution.

If a consumption chain project only uses the name "lowering the threshold" to actually carry out "traffic harvesting", it is bound to become a tool for "shell exchange and harvesting leeks"; only by deeply binding technological innovation with user value can one secure a place in the industry transformation.