Hodl Habits

Hodl Habits is a decentralized application (dApp) built on blockchain technology that gamifies personal development by incentivizing users to build and maintain good habits.

1. Core Concept: The dApp allows users to set up habit challenges that they commit to for a set period, with specific goals they must achieve consistently. Users join these challenges by staking cryptocurrency tokens as a commitment to the challenge. Completing the challenge results in rewards, while failing to meet goals leads to a proportional loss of the staked tokens. Top performers in the challenge can earn additional rewards, including special prizes funded by sponsors.

2. Web3 Integration & Wallet-Based Login: The dApp integrates Web3 wallets, utilizing Worldcoin for seamless identity verification and Dynamic for enhanced functionality. This Web3 framework ensures decentralized, secure, and transparent management of user assets, while giving users privacy and control over their data and transactions.

3. Skin in the Game! How Challenges Work?: Creating Challenges: Users can create a habit challenge, specifying key details such as:

Challenge Name & Description: A clear purpose for the habit they want to build. Start Date and Duration: The challenge runs for a set number of days or weeks. Schedule & Repetitions: How often the habit needs to be completed (e.g., daily, every other day, or specific days of the week). Skin in the Game! (Stake Amount): A certain amount of cryptocurrency that participants must stake to join the challenge. This creates a financial incentive to stick with the habit. Joining Challenges: Other users can browse and join public challenges. Upon joining, they stake the desired token amount and commit to the same schedule and goals. Their progress is tracked within the app, which automatically verifies whether habits are completed or not.

Habit Completion & Tracking: The app provides daily reminders based on the user's schedule. Users must check in to mark a habit as completed within a designated window (e.g., 1 hour after the scheduled time). If the user misses this, a proportional amount of their stake is deducted and redistributed to the pool.

1. Token Staking & Rewards: Staking System: Each challenge requires users to stake a desired amount of tokens. This stake creates a level of commitment and accountability. If users successfully complete their habits throughout the challenge, they get their stake back, along with potential rewards based on the performance of other participants and the presence of sponsors.

Penalty for Missing Habits: If a user fails to complete a habit within the specified time frame, a proportional portion of their staked tokens is deducted. This amount is redistributed to the penalty pool and shared among those who successfully complete the challenge, incentivizing consistent performance.

Reward System: Users who complete the challenge earn rewards. Rewards are structured in various ways:

Full Refund: Users get their entire staked amount back. Bonus for Consistency: Users with the highest success rate (e.g., 100% completion) may receive a 90% share of the penalties from those who missed habits, the other 10% is destined to the sustainability of Hodl Habits . Additional Token Prizes: Extra rewards may be distributed based on leaderboard rankings or performance tiers.

1. Sponsor Participation: Third-Party Sponsors: The app allows for external sponsors to fund challenges or offer rewards for top-performing participants. These sponsors can contribute additional token rewards to specific challenges, incentivizing higher participation.

Sponsors use Sign’s attestation flow to verify the winners, ensuring they meet all the requirements and conditions for receiving the prize.

Sponsorship Models: Performance-Based: Sponsors may offer rewards to participants who achieve a perfect score or finish in the top percentage. Random Draw: Sponsors can also offer random prizes to participants who complete a certain percentage of the challenge. Sponsor Dashboard: Sponsors can track the progress of the challenges they fund, get visibility into user engagement, attest the winners with Sign and offer more prizes based on challenge outcomes.

Attestation Flow:

Step 1: Sponsor Sign-In: The sponsor logs into the platform using their Web3 wallet they used to sponsor the challenge. Step 2: Challenge Data Review: The sponsor reviews the winners, which are auto-generated based on the performance tracked by the app’s smart contracts. Step 3: Attestation: The sponsor initiates the attestation using Sign, generating a cryptographic proof that validates the winners. Step 4: Distribution: After the attestation is completed, the smart contract releases the rewards, ensuring they are distributed fairly based on the verified attestation.

1. Gamification & Social Elements: Leaderboards: The app features a leaderboard where users can see how they rank compared to other participants based on their habit completion rate. This promotes friendly competition and further incentivizes users to stay consistent. Achievement Badges & Streaks: Users earn badges for hitting milestones (e.g., 7 days in a row, 30 days streaks) or for completing multiple challenges in a row. These badges can boost a user’s profile and be displayed publicly. Social Sharing: Users can share their progress on social media or within the app’s community to motivate others and showcase their accomplishments.

2. Smart Contracts & Automation: The app is powered by smart contracts on the blockchain, ensuring transparency, security, and automation. The smart contract handles: Token Staking: Automatically managing the staked tokens for each user and ensuring fairness in the system. Penalty Distribution: Automatically deducting tokens from users who miss habits and redistributing them to those who complete their goals. Reward Payouts: Calculating and distributing rewards to top performers based on their completion rate and sponsor contributions, some rewards require the attestation of the sponsor. Immutable Rules: Once a challenge is created, the smart contract locks in the rules, preventing any tampering or changes to the conditions.

3. User Profile & Progress Tracking: Personal Dashboard: Users can track all their active, completed, and upcoming challenges in one place. It shows their overall habit streaks, challenge history, and rewards earned. Profile Metrics: The app tracks key stats like total habits completed, success rate, and total tokens earned or lost. Goal Setting & Growth: Over time, users can set more challenging goals and track their progress, making the app not just a tool for building habits but also a way to visually see their growth.

4. Community & Long-Term Vision: The app creates a community of like-minded individuals committed to self-improvement, with the added incentive of financial rewards. Users can follow each other, join challenges together, and share tips and motivation. Future Expansion: The app could expand into other wellness categories, like fitness, mental health, or learning, offering tailored habit challenges and specialized sponsor opportunities via influencers and businesses .

5. Security & Privacy: Decentralization: As a Web3 dApp, the app emphasizes privacy, decentralization, and user control. Secure Transactions: All token staking, penalties, and rewards are handled via smart contracts, reducing the risk of fraud or manipulation.

Summary: In essence, the Web3 Hodl Habit Crypto Challenges dApp is a next-generation platform for personal development, merging the world of habit-building with decentralized finance (DeFi). Users are incentivized to improve themselves through a staking model that rewards consistency and success, while introducing a fun and engaging element through gamification, social features, and sponsor-backed rewards. It’s a unique combination of self-improvement, accountability, and the power of blockchain to create a decentralized ecosystem where building better habits leads to tangible rewards.

Partner technologies Login in with Dynamic : Dynamic simplified complex wallet interactions and user profile management, giving users more control and flexibility while interacting with their Web3 assets. This enhanced the overall UX, making Web3 technology accessible to less tech-savvy users.

Login in with World Coin : Worldcoin provided a reliable way to verify that participants are real, unique individuals. This was essential for both preventing fraud and making sponsors feel comfortable backing the project. By ensuring users aren’t using multiple wallets to game the system, the app fosters a genuine community.

In a future update, not only sponsors will attest winners, users will also attest other users only if they are identified via World Coin.

Sign Protocol:

The attestation process is seamlessly integrated with the smart contracts, ensuring that reward payouts are only triggered once attestation is complete.

The Sign protocol added a critical layer of trust to the sponsor interactions. The ability to attest winners before distributing rewards makes sponsors feel secure in knowing that they are supporting legitimate participants who’ve met the challenge goals.

Automated Stake Adjustment : A smart contract feature was implemented that dynamically adjusts user stakes based on their performance. If users consistently meet their habits, they can increase their stake and potential reward mid-challenge, providing extra motivation to maintain streaks.