# Problem & Target Market

The core idea behind crypto is to **shift the world's financial power from a small group of institutions back to the people**.\
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The same mission lies at the core of Web3 across industries and applications, from finance through gaming to art and beyond. **Community is the backbone of the entire movement**, designed to benefit all, not just a few. However, there's one major obstacle:\
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**Most of the Web3 projects fail to reward their communities over time, and most end up crashing.**

In recent years, there has been an increase in projects that are primarily focused on rewarding their community. Afterall, the top 100 tokens in the World have 1 thing in common: An engaged community. A basic community rewards model for most projects is to redistribute transaction fees between holders. Another rewards mechanism especially common among NFTs is by distributing other digital assets, such as new NFTs or airdropping their own token.&#x20;

Most of these projects end up crashing over time. For 3 reasons:\
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1\. Ponzinomics: Models rely on new influx of people joining. If new people stop joining their community, the token crashes.&#x20;

2\. Lack of real value-generation in ecosystems: Transaction fees of the same token backed by nothing else but the value of the token itself does not create real value.

3\. Lack of real world rewards incentivising community: What keeps communities from staying loyal over the long term seems to be the lack of tangible rewards in day to day life.

After a decade of developing blockchains and solidifying regulations, we are primed to embrace Real World Assets as a part of Web3 ecosystems and leverage them to address the above Web3 pain points. Recognizing this, we see a golden opportunity to bridge the gap - designing a rewards ecosystem is fuelled by Real World Assets, merged with the explosive, compounding nature of Web3.

> ### Our goal is to merge the best of community-driven Web3 models with the sustainability of RWA to offer awesome benefits that genuinely enhance daily life of our community, consistently.

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## 🟣 Real World Assets&#x20;

Institutional investors are rallying to Web3, with giants like Blackrock and HSBC paving the way. The blockchain industry is more transparent, better regulated, and less volatile than ever before. All pieces are in place for mainstream blockchain adoption to become a reality.

Institutional adoption is being led by Real Yield and Real World Assets. Thanks to Web3 projects tokenizing real-life assets, the blockchain and the real world can finally be bridged.

The problem with asset tokenization though, is the lack of potential exponentiality. 74% of people in crypto are interested in exponential gains despite high-risk profiles of crypto.

To crack mass adoption, it is important to align with crypto culture. This is why Lingo has been designed to leverage Real World Assets while staying true to the potential and exponential nature of crypto culture.

> _Asset tokenization can generate annual savings of $20 billion in just the global clearing and settlement costs. By 2030, it could unlock a $16 trillion global market for tokenized illiquid assets, accounting for less than two percent of the total notional value of public and private assets._
>
> **Boston Consulting Group**

## 🟣 Web3 Market Landscape

Lingo positions itself uniquely in this landscape. It combines the real value generation aspect seen in RWA projects with the exponential nature of token economies. Our model caters to the evolving needs of new Web3 adopters who seek value-centric experiences. By integrating real value-generating mechanisms with a solid, global partner rewards ecosystem, Lingo aims to amplify value for end-users, offering a more exponential, user-friendly and rewarding experience in the Web3 space.
