Currently, the algorithm black box of Virtual @virtuals_io is quite obvious, as previously mentioned in tweets. Setting aside personal points and reduced earnings, the influx of people relying on word-of-mouth to participate in projects in the overall ecosystem is visibly 'increasing'. Whether it’s through word-of-mouth construction or deep personal financial participation, everyone has their own choices. Regardless of the correctness of the investment method, the bonus points of the ecosystem itself are worth thinking about.

As we all know, the current types of points can be roughly divided into two categories:

1️⃣ Daily point distribution

2️⃣ Daily activity bonuses

Taking daily point distribution as an example, $VADER, Yapping, Referral, and veVIRTUAL correspond to four different groups of people.

Frankly speaking, Virtual has now entered the second stage. I believe that $VADER has already become the 'main theme' of the second stage, as discussed in yesterday's analysis of the new VADER policy. When even word-of-mouth has thresholds, and VADER becomes the ticket, its position in the ecological niche has qualitatively changed. As @VaderResearch said, I am also a creator, so I value and appreciate the daily work of creators. If the first stage treats Virtual as the main theme, then the importance of VADER in changing the ecological niche in the second stage is even more evident; obviously, both users and project parties benefit from this. It's clear that after the launch of VADER's plan yesterday, the token data for Virtual and VADER both showed significant changes, marking a node for the transition between old and new users.

As for Yapping, I saw Vader's reply under the tweet yesterday. The current point algorithm, besides referencing Kaito's open protocol, also has Virtual's own algorithm. Seeing this reply, it's easy to understand why users not on Kaito's list still have many points, or why there are cases where points suddenly multiplied after being relatively low for a few days. There are also instances where points are given without any updated tweets.

In simple terms, Yapping is also a dual mechanism. If Kaito is on the list, there will definitely be a certain amount of base points used for protocol transmission as the base value for Yapping points, and on top of that, Virtual has its own algorithm distribution mechanism that can dynamically balance/intervene users' acquisition of Yapping points. This is actually beneficial for users with a lower base, as they can earn points through creation without having to compete for Kaito's ranking. Of course, the most important thing in this process is persistence.

Referral can also be considered a relatively new metric, and of course, many projects continuously offer new user rewards. For the platform, a steady influx of new users is the cornerstone of its development. Previously, Virtual relied on self-motivation, and most users joined the ranks of Virtual through the community and Vapping. Since the introduction of Referral two weeks ago, more people have been discussing Virtual. Naturally, for users with many accounts, the introduction of Referral also increases the behavior of 'nesting dolls'. Without increasing the number of base accounts, they can still earn more rewards. After all, first-level referral rewards are 20%, and second-level referral rewards are also 5%.

veVIRTUAL was the mainstay in the first stage. As everyone knows, the way to obtain veVirtual is by staking Virtual. The first stage saw a bulldozer-like rise in Virtual, increasing the influx from the external market into the Virtual ecosystem. Under the lock-up mechanism, the circulation of virtual tokens in the external market decreased while the number of participants increased, resulting in a steady rise in token prices.

Daily activity bonuses are roughly divided into two categories:

1️⃣ Trading

2️⃣ Staking

In fact, I do not oppose the act of trading points; it’s just that after the current mechanism change, there are indeed more and more people spamming points, and many projects can spam a large number of points at a very low cost. Everyone knows that the purpose of point trading is to increase market liquidity. The demand for 'prosperity' can indeed be understood, but would changing to LP rewards or altering point distribution weight ratios, thereby increasing new token rewards, make it feel more 'prosperous'? Or should we directly eliminate old tokens based on a survival of the fittest approach?

On the staking front, the most discussed aspect is 'paper wealth'. It seems that there are a lot of profits, but how much can actually remain during the yellow lock period? Of course, there are users who spam TP, doing only 2-3 rounds a month. However, most users still choose to stake, and the staking rewards have not, despite the coefficient increase, determined the rise of staking points based on testing. Thus, the value of users staking so many tokens, in a sense, 'locking up', is quite worth considering.

Although everyone's operational strategies are different, the ultimate goal is to 'profit'. As a platform, Virtual clearly cannot satisfy everyone. However, the principle of making a decision and sticking to it is something everyone understands, but the variability of the final results and the randomness of the process are not so perfect. For new users, a 'all-in' strategy is clearly much more advantageous than participating in projects. If they encounter some poorly rated projects, the user's 'sense of participation' will be very poor. Of course, I also hope everyone finds their own path to growth. The road is long and obstructed, so let’s walk and cherish it!