Successful businesses need to determine the right product-market fit. They need to effectively deploy and adjust incentives and resources. And they need to make data driven investment decisions to achieve positive ROI.

But crypto today lacks a focus on analytics in business decision making to enable these.

Growth DAO has been established as a community initiative to solve this by bringing analytics driven growth marketing strategies to Terra and its partner chains and projects.

The problem and what we need

There is a set-and-forget approach to incentivising economic activity in crypto and this has got to change. We need to understand key user and product data and from this, build tools to manage incentive structures so that they can be adjusted and optimised for effectiveness.

• What is the cost of user acquisition, the retention rate of new users, or the lifetime value of these users?
• How do you break down and measure the components of TVL, the most common metric in crypto, and how many users does one dollar of TVL acquire?
• Customer acquisition in crypto today is about paying users but there is little emphasis on engagement or retention metrics. Real world metrics like LTV/CAC* or a measurement of the LTV of a single dollar of liquidity seem absent in this space.

There is a significant opportunity for teams and ecosystems in crypto who understand traditional ROI metrics and who can determine ways to use these metrics to deploy capital more effectively.

Enter Growth DAO

Growth DAO is a group of community members building data-driven analytics tools for more effective allocation of investment capital, project incentives, and ecosystem liquidity in web3.

Growth DAO leverages user-centric data insights for investment and growth decision making. Deployment of capital will be more accurate and can be fine-tuned in real time to produce better investment outcomes.

Ultimately Growth DAO will be able to guide the strategic decision making of investments, incentives, and liquidity across Terra and partner chains.

And every protocol that launches on Terra will have access to analysis of their own data and other Growth DAO resources to help them better managed their businesses.

Summary

Dynamic Incentives - There is a need for data analysis and tools to manage dynamic incentive structures that respond to changes in demand, retention, and engagement.

Acquisition and Activation Costs - Priority needs to be given to understanding the importance of acquisition costs, activation costs, retention, referral, and revenue in creating effective incentive structures.

Finding Product-market fit - Product-market fit is about finding the right balance between a product’s features, pricing, and customer demand. By understanding a target market and what they need, we can build products that meet these needs more accurately and profitably.

**Community Driven -**We want community participation and understanding of the trade-offs when making strategic decisions on where to deploy assets and liquidity. This means community involvement in analysis and decision-making for asset deployment, adjusting incentive structures, and measuring the effectiveness of these incentives.