I use four commonly used cost concepts in economics: "sunk cost", "marginal cost", "opportunity cost", and "time cost" to tell you how to optimize Binance Alpha, because what others say may not be comprehensive enough.
The reason I dare to say this is that I have been continuously predicting, adjusting strategies, and publishing corresponding content from the very beginning of Binance Alpha. The jokes you see about the happy family earning a certain amount each month come from me.
When learning about cost management in economic principles, we know that some costs are insufficient to support decision-making, some can support short-term decisions, and some can make decisive judgments. Binance Alpha itself is a calculation task, using economic principles to calculate this, and Binance is doing better.
Now let's look at them one by one, and you can see if my calculations are correct; you are welcome to provide feedback.
For normal scoring, a common configuration is an account with over $1000, which can hard earn 2 points of asset score, thus improving scoring efficiency. We will take this as a benchmark for calculation.
1⃣ "Sunk Cost"
Costs that have already occurred and cannot be recovered, sunk costs generally do not affect decision-making.
The basic threshold for Binance Alpha may currently not be lower than around 190 points. A person typically scores about ten points a day, and it takes at least about 10 days to reach the threshold of 190 points. Before reaching the threshold, daily losses range from 3-5U at least, and if squeezed, it can be as much as over 10U, resulting in a sunk cost of 30-100U over 10 days. This part of the cost cannot bring you any benefits, just like if you ate 7 pancakes to feel full, you can only honestly finish the first 6.
2⃣ "Marginal Cost"
The cost added by increasing one unit of output or behavior. Marginal cost usually affects decision-making because it directly determines profit.
So how much should we score reasonably?
In terms of losses, we calculate based on a transaction volume of 0.02%, setting the airdrop threshold at 190 points, and calculating the value of each airdrop including compensation at 150U. Thus, we have obtained the following table.
It can be seen that your marginal cost is the transaction loss. As the transaction amount continues to increase, the loss cost will gradually increase, while the speed of earning points and receiving airdrops cannot keep up with the speed of loss, leading to a decrease in net profit.
That is to say, under the current environment, scoring at the 60,000 level is the optimal solution.
Fortunately, the double trading amount on the BSC chain has always existed, allowing us to score at the 30,000 level to earn points equivalent to the 60,000 level, and the net profit from scoring at the 60,000 level has also reached a new high of 703U.
How to score, I don't need to repeat it, right? The chart is welcome to be shared, please do not cut off the source.
3⃣ "Opportunity Cost"
The potential earnings of choosing one action while giving up the other best alternatives. Opportunity cost is an important factor affecting decision-making.
The opportunity cost of scoring Binance Alpha mainly has two aspects, one is external opportunity cost, many projects going directly to Binance Alpha will directly affect your other project airdrop earnings, but this issue is not within our consideration.
The internal opportunity cost lies in:
Which airdrop should I choose to maximize my earnings;
Should I participate in the trading competition, using the battle to sustain the battle, filling losses with rewards?
How to sell is up to everyone's decision.
🔸 The answer to which one to choose is here:
The era of venture islands has become a thing of the past; I believe it will be difficult to see another venture island in the future. But that doesn’t mean there are no opportunities for big gains.
▪️ For example, when TGE was happening, everyone invested not much (reference the fundraising target and multiples), you could consider participating.
▪️ The valuation of old coins with new investments is relatively stable, while the probability of new coins being listed is relatively higher, which may be better, with a higher chance of a big gain, but it could also be worse, as there won’t be serious market dumping.
🔸 The answer to the trading competition is here:
Many trading competitions have significant losses, and everyone can calculate the loss situation while considering the trading competition threshold to decide whether to participate. Don’t be misled by the temporary entry threshold; many people will rush to increase trading volume on the last day. If you are worried about being pulled back, don’t participate in the trading competition; if you have a strong gambling tendency, it’s okay to take a gamble.
4⃣ "Time Cost"
Here I switched concepts; unlike the time cost of doing this, what I want to say is the current practice of scoring for 15 days and stopping for 15 days.
The points rule of Binance Alpha has been thoroughly understood by everyone, and someone invented the idea of scoring for 15 days and stopping for 15 days. Although the cost does not increase additionally and the input-output is the same, from the perspective of time cost, this method is not advisable.
Binance Alpha has not been popular for a long time; I do not know how long it will last. Although the project party currently has ample ammunition, as more and more people participate, the number of people sharing the cake increases, and no one knows how it will be in the later stages. Early participation brings early benefits; if you still think of stopping for 15 days, from the first day you start receiving airdrops, you should consider that the cycle has ended and immediately start a new 15-day cycle. In this way, during the same period, you can receive airdrops more times than others, isn't it better? Currently, there are still airdrops worth $150; who knows how much there will be next month or the month after? If it drops to only $100, then this effort won't be as appealing.
Finally, here is a calculation for assets over 10,000:
