Preface

For a long time, the power of the global financial system has been concentrated in the hands of a few institutions. The core idea of cryptocurrency is to return this power to the people. This mission extends beyond the financial sector, reaching into the Web3 ecosystems across various industries and applications, including gaming and art. Although communities are the cornerstone of this movement, many Web3 projects face challenges in providing long-term rewards to their communities, leading to their eventual collapse.

In recent years, more and more projects have started to focus on community rewards, recognizing that an active community is crucial for success. However, many of these projects still fail due to three main reasons:

1. Ponzi economic models: These rely on the continuous influx of new members; once new members stop joining, the token value collapses.
2. Lack of real value generation: Supported only by the transaction fees of the tokens themselves, these projects fail to create real value.
3. Lack of real-world rewards: A key factor in maintaining long-term community loyalty is the absence of tangible rewards visible in daily life.

With the development of blockchain technology and the improvement of regulatory frameworks, we are now ready to introduce Real World Assets (RWA) into the Web3 ecosystem to address the above pain points. Institutional investors are rapidly entering the Web3 space, with giants like BlackRock and HSBC leading the trend. The blockchain industry is now more transparent, better regulated, and less volatile than ever before. The introduction of RWA brings new opportunities to the Web3 ecosystem, addressing the issue of the lack of exponential growth in asset tokenization.

The project Lingo, introduced in this article, combines the real value generation of RWA with the exponential growth characteristics of tokenomics. By integrating real value generation mechanisms with a global partner reward ecosystem, Lingo aims to provide a more exponential, user-friendly, and rewarding Web3 experience.

1. Basic information

Lingo is the world’s first community reward token, backed by real-world assets that generate genuine value for the ecosystem. It rewards its community with real-world benefits in a continuous and exponential manner.

The premise of Lingo is very simple: to create a perpetually growing reward ecosystem that generates real-world community rewards, irrespective of token and market fluctuations.

1.1 Project information

Project name: Lingo

Official website: https://lingocoin.io/

Twitter: https://x.com/lingocoins (171K followers)

Discord: https://discord.com/invite/lingo (95.3K members)

Litepaper：https://lingo.gitbook.io/litepaper

1.2 Token information

Token Name: LINGO

Current Valuation: $300 million

The $LINGO token is the native token of Lingo, built on both Base and Solana. Primarily, $LINGO is a utility token, but it will also evolve into a governance token, designed to reward users with real-world benefits and allow them to vote on the next reward pool.

Users will have several ways to acquire $LINGO tokens:

1. Upcoming airdrop -> Ensure you follow us on X to join first
2. Private sale
3. Community round (more details to be announced)
4. Initial Exchange Offering (IEO)

2. Lingo Project Background

2.1 Team background

Lingo was founded by HM Rawat and David Amsellem, who previously established John Paul, a global leader in premium loyalty services. John Paul was acquired by AccorHotels in 2016 for $150 million. The Lingo team comprises former executives from Binance, Consensys, Booking.com, and CA Bank.

2.2 Funding and Partnerships

According to official information, the project achieved significant milestones in mid-2023:

1. Raised over $5.5 million during a bear market with zero marketing budget.
2. Signed over 100 Web3 Key Opinion Leaders (KOLs) and more than 100 celebrities, totaling over 300 million followers, with a contract value exceeding $30 million.
3. Secured second place in the pitch competition at the World Blockchain Summit in Dubai.
4. Established partnerships with top Centralized Exchanges (CEX).

3. Lingo’s Commercial Value

3.1 Pain Points of Web3 Projects

Many Web3 projects fail due to an inability to continuously reward their communities. The main issues include:

1. Token ecosystems lacking genuine value creation.
2. Communities lacking sustained rewards.
3. Absence of incentive mechanisms to maintain long-term community loyalty.

3.2 Lingo’s Solution and Business Model

Lingo drives its reward ecosystem through real-world assets that generate cash flow, creating a virtuous cycle model of continuous value growth.

1. Real-world asset-backed reward ecosystem: Actual value supported by cash-flow-generating real-world assets.
2. Virtuous cycle model: Lingo’s reward model aims to create increasing value over time, avoiding vicious cycles.
3. Sustained real-life rewards: Rewards can be experienced in real life, ranging from vacations and shopping to monthly tickets.

Specific Method:

The Lingo token has a fixed supply, and fees generated from transactions are used to purchase cash flow assets (such as real estate). The income from these assets is used to repurchase Lingo tokens monthly, which are then distributed to the community in the form of loyalty points. These loyalty points can be redeemed for rewards such as vacations, shopping, and tickets. This creates a positive feedback loop:

1. People use a dedicated app to receive free rewards in real life
2. Naturally attracting a larger community
3. Stimulating transaction volume
4. Generating more fees
5. Purchasing more real-world assets
6. Increasing monthly buyback pressure
7. Providing more rewards to the community

In summary, Lingo creates permanent buying pressure through monthly buybacks, benefiting token holders. The real game-changer is the flywheel model: as the community grows and Lingo tokens are traded more, Lingo’s real estate portfolio grows annually. Through these real estate investments, Lingo aims to sustain an ecosystem around the Lingo token, using the income from these investments to support the token’s value through regular buybacks, maintaining a stable and robust economy on its platform. This leads to sustained expansive results: Lingo’s model exists to reward its community members.

3.3 How Lingo’s Value is Generated

Lingo’s value creation system is supported by Real World Assets (RWA) such as short-term rentals and hotels. These assets generate income from their operations, which drives the reward system. Lingo selects its RWA portfolio based on three main criteria:

1. Top-tier cities and regions worldwide: Targets include major cities like Paris, Dubai, and Miami.
2. Long-term stable yields: An average target of 6%.
3. Optimization for short-term rentals (ideally 7-9%, enhancing practical value).

It’s important to note that Lingo does not tokenize its owned real estate or operate a protocol for tokenizing real-world assets. Lingo only tokenizes the income from RWAs, making it a utility token. This means Lingo tokens are relatively insulated from fluctuations in real estate prices, with the primary value source being rental income. Additionally, Lingo leverages partnerships to negotiate bulk orders and discounts, providing higher rewards for community users.

3.4 Lingo’s Market Opportunity

Based on information provided by Lingo, they estimate the market size as follows:

1. Total Addressable Market (TAM): $500 billion, which is the projected total market for tokens.
2. Serviceable Addressable Market (SAM): $40 billion, which Lingo directly focuses on, including utility tokens, blue-chip NFTs, meme coins, and RWAs.
3. Serviceable Obtainable Market (SOM): $4 billion, which Lingo sees as directly serviceable and achievable in the medium to short term.

3.5 Lingo’s Growth Projections

Currently, Lingo’s valuation is $300 million, with an official estimate of 1% daily trading volume. They project that after five years of growth, the total valuation will reach $949 million, achieving unicorn status. The breakdown includes:

1. $110 million in cumulative real-world assets (RWA) and cash
2. $759 million in discounted cash flow (DCF) value
3. $80 million in brand value

4. Lingo Product Introduction

4.1 Key Product Features

Lingo’s platform will have the following core features:

1. A mortgage platform with Web2 and Web3 authentication
2. Reward distribution driven by real-world assets (RWA)
3. An integrated rewards store, including shopping, booking engines (over 100,000 hotels), and experiences
4. Direct booking of rewards using the platform’s native tokens
5. Enhanced reward experience through a gamified system

Booking System

Lingo will develop a dApp for hotel reservations. The first version will integrate over 100,000 hotels worldwide, allowing bookings using $LINGO tokens.

Earnings System

Earnings are supported by the RWA system, allowing users to view and manage points within the system.

Security and Other Aspects

Lingo’s smart contracts have undergone a comprehensive audit by Hacken, receiving an overall score of 9.5/10 and a security score of 10/10. In the next product iteration, Lingo plans to create a DAO, enabling the community to vote on subsequent real estate investments and rewards.

5. How to participate in Lingo

Lingo Airdrop Campaign

Lingo has launched an airdrop campaign with various ticket and token rewards, and participation is straightforward. They have introduced the “Airdrop Islands” page, a relatively mature gamified airdrop. The page features 5 unique islands, where completing tasks earns points to acquire LINGO tokens.

1. Participation link: https://lingoislands.com/?invite=1P0LH
2. Verify your Twitter and email on Ape Rock to receive a boarding pass and enter the airdrop game. Complete tasks on the other islands to earn points. Every account with a boarding pass qualifies for the whitelist of Lingo’s public presale.

6. Operational Update

6.1 Roadmap

1-3 years:

1. Establish a top-tier Web3 rewards community (Target: 300,000 members; Current: 130,000 members).
2. Integrate 100,000 hotels into the rewards store.
3. Achieve Tier-1 exchange listing.
4. Engage mainstream celebrities (over 100 individuals).
5. Introduce gamification mechanisms into the rewards store.
6. Create a DAO for RWA and rewards decision-making.

3-5 years:

1. Expand the rewards model to include airlines, clubs, shopping, etc.
2. Introduce a cashback model with ecosystem partners.
3. Increase ambassador reach from 300 million to 1 billion people.
4. Attract 1 million Web2 users into the ecosystem.

5-7 years:

1. Diversify RWA to include lifestyle acquisitions.
2. Partner with top companies to launch Lingo B2B rewards.
3. Collaborate with global real estate funds to integrate institutional portfolios into Lingo’s RWA pool.
4. Establish Lingo as the first mainstream brand in the crypto space (Web3’s Nike/Redbull).

Additional Information

What is RWA?

Real-World Assets (RWA) refer to the digitization and tokenization of real-world assets such as real estate, precious metals, stocks, and bonds using blockchain technology. This enables these assets to be traded and managed on blockchain networks, leveraging blockchain’s transparency, security, and decentralization to enhance asset liquidity and accessibility.

Key features of RWA include:

1. Transparency: All transaction records are publicly accessible, increasing the transparency of asset transactions.
2. Security: Blockchain technology provides tamper-proof transaction records, enhancing the security of asset management.
3. Liquidity: Tokenizing real-world assets facilitates easier trading, improving asset liquidity.
4. Accessibility: Blockchain technology allows more people to participate in asset trading and management, lowering the entry barriers.

RWA applications are extensive, including real estate investment, precious metal trading, and the trading of stocks and bonds. By introducing these traditional assets to the blockchain, investors are offered more choices and more efficient trading methods.

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