Can you both travel and get paid? So is this model really sustainable or is it a Ponzi scheme?
Some questions may come to users when they get free travel, even paid. So where does this money come from?
Luxworld is a Web3 application that pays users to travel and discover. Game developers aim to motivate people to explore the world and bring users into Web3.
This is the first application born associated with the GameFi and SocialFi model. The main slogan of the project is “You discover, We pay!”. This is the point that makes Discover-to-Earn, a trend that promises to make waves in the future.
The mechanics of Luxworld are simple: explore and get money. However, there are caveats. To get started, use the baggage, which is the game’s NFT.
With the combination of the GPS navigation system, the application can know the places you have checked-in and pay you a LUX token to continue the journey.
So first we need to know what is Ponzi scheme?
A Ponzi scheme is one where the original investors are kept sweet with the money coming from new people. Such a scheme will eventually unravel when it can no longer attract new investors.
Now, the cryptocurrency I have always accused it of being a Ponzi scheme, thanks to the fact that while some investors have become rich, others have lost everything.
Some obscure projects have slogans to attract investors with the prospect of huge profits. However, the truth behind is just a mechanism to extract money from the last to divide it by the first, the pyramid model gradually becomes clear when the number of players decreases, leading to the player’s income and affected.
Then here comes Luxworld, talking about paying people to explore. Is it an exaggeration to say that this model closely resembles Ponzi?
Below, we give reasons Luxworld is not a Ponzi.
A Ponzi will eventually collapse because of the unsustainable economic model underlying it.
Luxworld with its long-term goal, the project will control the rate at which new users join the game. Besides, the project knows the intrinsic of the development is the player, so the SocialFi factor that has been neglected by GameFi projects will be valued in Luxworld.
Luxworld brings real value to players. It allows people to do what they want to do every day. Tourism is an indispensable element in human life.
Going here and there not only comes from aspiration, a desire but also a necessary need in this boring life framework.
When people go to another place, they will have new life experiences, gain more interesting knowledge that they did not know before.
The tourism industry has developed for a long time, from introducing rudimentary means such as horse-drawn carriages to modern jetliners that make geographical distance no longer a problem.
Understanding this need, Luxworld allows people to bring real values from outside life into Web3 applications, so sustainability is real and existing values will bind the community together.
Once value has been established, it is not surprising that the development of the project will increase and grow over time, something that Ponzi projects do not have.
It also highlighted the transparency of the project. This is a project backed by many investors and organizations such as (…)
The combination of blockchain, Web3 and crypto elements makes the payment transparent, clearly no one can control the transactions.
This is the weakness that Ponzi projects seek to hide, and for Luxworld, it is a feature that brings convenience to users.
So is Luxworld a potential project in the future?