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Capsule Powers r/datadao's Exponential Growth

Capsule Powers r/datadao's Exponential Growth

Partnering with Capsule catapulted r/datadao’s growth

r/datadao is the world’s first data DAO. Users can join with their reddit account, add their data, and earn points based off of their contributions. The r/datadao community receives a token ($RDAT) that represents their ownership in the dataset. Users can govern the dataset through Commonwealth, where they can vote to rent the data out to other AI companies, train models on it, or even delete it entirely.

r/datadao’s partnership with Capsule in April 2024 was an adoption catalyst, sending the number of initial users from 20,000 on day 1 to a 10x increase, broaching 200,000 by day 5.

The Need: A Cross-App, Easy Onboarding Solution

Most embedded wallet solutions in the market are restricted to one application. This means users can create embedded wallets within the context of one application, but they cannot take those wallets elsewhere to other onchain apps.

For applications like r/datadao that depend on other tools like Commonwealth, this was a problem.

r/datadao needed an easy way to onboard new users (with an email or social login) and enable them to use their r/datadao wallets across other apps. In this case, r/datadao needed to let users govern their Reddit data in another platform that specialized in onchain governance.

The Solution: Capsule

r/datadao has grown significantly since working with Capsule. Capsule provided critical wallet infrastructure and worked hand in hand with the r/datadao team to see the launch through, with the integration happening end-to-end in ~2 days.

Cross-app embedded wallets not only make it easier for r/datadao developers to onboard their users, but Capsule’s support and technology ensures growth across the entire r/datadao ecosystem.

Sybil Resistance

Capsule’s architecture additionally played a significant role in the launch of r/datadao. Given users were granted tokens as a representation of their ownership in the dataset, r/datadao was botted over the course of launch.

Capsule's use of passkeys allowed r/datadao to leverage Capsule logins as a lightweight Sybil protection mechanism. Passkeys in Capsule protect key shares on a user’s device. This means users are required to have a physical device and must use FaceID or TouchID to create a wallet. This gave the r/datadao team more confidence that users with Capsule wallets were real.

Making Collectively Owned Data a Reality

r/datadao is a pioneer in an emerging era of products where crypto isn’t a category or a feature. Rather, it is the unique reason making everything possible.

r/datadao was able to leverage Commonwealth for composable DAO tooling instead of building functionality for governance within their own application, allowing them to go to market quickly. Users were able to login to Commonwealth via their Capsule cross-app embedded wallets, allowing r/datadao to take advantage of the onchain app ecosystem for their use case and retain their users in the process.

r/datadao’s massive success is just the beginning. The r/datadao team attributes this growth and success to their deep partnership with Capsule:

“We love the way that Capsule makes it so easy for a tech luddite to play with crypto projects. Other providers we’ve tried haven’t been able to cut through the BS, and sometimes made the process worse.”

Can I use Capsule for my own projects?

To get started with Capsule, head over to docs, book a call with us, or request an API key.