[SCP-TBD] “Napkin Ads (Offline QR Funnel Pilot)

Summary: This proposal requests approval for a three-month pilot campaign with Napkin Ads, distributing 1.7M branded napkins nationally to drive new ShapeShift wallet installs and first-time trades. Napkin Ads has delivered a 19% conversion rate from installs to trades in prior web3 wallet campaigns. Based on those results, our modeled funnel for ShapeShift projects ~6,700 new trading wallets at ~$8.95 CAC; nearly aligned with our $8 acquisition target against a $23 LTV per connected wallet. Total campaign cost is $60,000 to be paid in FOX. The DAO is asked to contribute $50,000 FOX, with the Marketing Workstream subsidizing $10,000 FOX. Of the DAO’s contribution, $40,000 may be converted into USDC for vendor payment, while $10,000 will be deposited into rFOX. This proposal is an aggressive, incentive-driven pilot including 5 x $1,000 FOX trader rewards and retargeting spend to maximize conversions from the initial distribution. While this proposal is live, I plan to personally visit a local venue where napkins are being distributed and observe interactions with the OOH activation and how they are being received. This proposal preapproves and pre-funds this activation, with a tentative launch date in late Q1 2026. The timing of this launch can be flexibly adjusted and will not proceed without tightly scoped, trackable events throughout the funnel.

Motivation: Traditional digital ads often cost $35–$100 per active trading wallet. Modeled napkin economics come in significantly lower, with a projected ~$9 cost per trading wallet under this campaign. This initiative complements ongoing digital acquisition experiments. The ShapeShift team has recently added Addressable tracking to the .com empowering us to get a very granular metrics on traffic and conversions. Napkin Ads is a tool for us to expand beyond organic reach and into high-value markets that traditionally could not be reached by digital media. Based on initial calculations done with Tokenomics, ShapeShift values a connected wallet at approximately $23 over three months (LTV). Our acquisition goal is ~$8 per connected wallet. The modeled funnel for this napkin pilot achieves ~$8.95 per trading wallet, nearly aligned with CAC targets. This whole program is able to be funded exclusively with FOX tokens which is hard to find in paid media.

Specification: Vendor: Napkin Ads Term: 3 months Distribution: 1.7M branded napkins. QR scans 76k projected 68k guaranteed. If not hit, the campaign will be extended at their cost until the minimum is hit. Total Cost: $60,000 in FOX DAO Ask: $50,000 FOX $40,000 FOX sold to cover costs (or paid in USDC if preferred) $10,000 FOX deposited into rFOX Marketing Workstream Subsidy: $10,000 FOX The distribution will be focused on venues that attract users most likely to download and use ShapeShift’s mobile wallet. This includes coffee shops near coworking spaces and tech offices, restaurants and lounges around major crypto and fintech events, and hotel bars frequented by business travelers. This will prioritize zip codes in high-income markets such as New York, Miami, San Francisco, Austin, and Seattle. The placement plan is based on real performance data from a previous wallet partner campaign, allowing us to focus on the venue types and neighborhoods that delivered the strongest scan-to-install and onchain engagement. Budget Breakdown: $50,000 FOX → Napkin Ads distribution & package (1.7M napkins, QR tracking, creative, brand lift study, social research) $5,000 FOX → Incentives (5 winners of $1,000 FOX each for first-time traders) $5,000 → Retargeting campaign for scanners who don’t install via Addressable

[Best Case] Modeled Incentivized Funnel Economics ($1,000 bonus for trading): Napkin Distribution: 1,700,000 Scan Rate (Aggressive w/ incentive & urgency): ~8% → ~136,000 scans Wallet Install Rate: ~26% → ~35,400 installs Active Trading Wallets (19%): ~6,700 Cost per Trading Wallet: $60,000 ÷ 6,700 ≈ $8.95 [Worst Case] Guaranteed Non-Incentivized Funnel Economics: Napkin Distribution: 1,700,000 Scan Rate (Aggressive w/ incentive & urgency): ~4% → ~48,000 scans Wallet Install Rate: ~26% → ~12,480 installs Active Trading Wallets (19%): ~2,371 Cost per Trading Wallet: $60,000 ÷ 2,371 ≈ $25.31

Tracking & Reporting: Unique QR codes per batch tracked into Mixpanel funnels Metrics: scans → installs → wallet connections → first trade Retargeting lists built from scanners who do not install → nudged with paid ads For first-time mobile traders, Mixpanel data can be paired with onchain wallet addresses to filter out repeat users and minimize reward abuse DAO will receive a post-campaign report comparing results against the modeled funnel and Apple Search Ads benchmarks Funnel Sensitivity Analysis Sensitivity by Scan Rate (install rate fixed at a projected 22%) If 1.7M napkins are distributed and install rate stays constant at 22%, the scan rate becomes the driver of CAC. Conservative Case (3% scan rate): About 51,000 scans. At 22% install, ~11,200 installs. With 19% of those trading, ~2,100 trading wallets. CAC: ~$28.60. Moderate Case (5% scan rate): About 85,000 scans. At 22% install, ~18,700 installs. At 19% trading, ~3,550 trading wallets. CAC: ~$16.90. Aggressive Case (8% scan rate): About 136,000 scans. At 22% install, ~29,900 installs. At 19% trading, ~5,680 trading wallets. CAC: ~$10.55. Best Case (10% scan rate): About 170,000 scans. At 22% install, ~37,400 installs. At 19% trading, ~7,100 trading wallets. CAC: ~$8.45.

Sensitivity by Install Rate (scan rate fixed at 8%) If scans hold steady at ~136,000 (8% of napkins), the conversion from scan to install is the key variable. Low Case (18% install rate): ~24,500 installs. At 19% trading, ~4,655 wallets. CAC: ~$12.90. Realistic Case (22% install rate): ~29,900 installs. At 19% trading, ~5,680 wallets. CAC: ~$10.55. Aggressive Case (26% install rate): ~35,400 installs. At 19% trading, ~6,730 wallets. CAC: ~$8.95. Best Case (30% install rate): ~40,800 installs. At 19% trading, ~7,750 wallets. CAC: ~$7.75.

Industry Benchmarks for Context To give external perspective beyond ShapeShift’s own funnel modeling: OOH QR Scan Rates: 1–3% is typical. With incentives and strong CTAs, 4–8% is achievable. Best-in-class campaigns can exceed 10%. Scan-to-Install Conversions: 15–25% is common. With incentives and optimized landing flows, 25–35% is possible. Install-to-Trade Conversion (Fintech/Crypto): 10–25% depending on onboarding friction and incentives. Cost per Active User (CAC): Crypto apps: $40–$100+ per active trading wallet. Fintech apps: $20–$40 per active user. Napkin pilot modeling: $9–$20 per trading wallet under most scenarios, with downside risk to ~$30 if scan rates underperform.

Summary: Even under conservative assumptions, CAC falls within normal fintech/crypto ranges. At modeled aggressive levels (~8% scan rate, ~26% install rate), CAC lands near $9, aligning with ShapeShift’s target of $8 per connected wallet against a $23 LTV over three months.

Benefits: Cost-effective acquisition: ~$9 per trading wallet, close to CAC target High visibility: national brand exposure in everyday environments. Specifically geofenced towards target demographics for ShapeShift wallet users. Distribution will focus on venues where our target users already spend time, such as sports bars during game nights, coffee shops near tech hubs, and restaurants in urban districts with higher crypto adoption. This ensures ShapeShift is in front of both everyday consumers discovering crypto for the first time and fintech-savvy professionals likely to trade. Novel experiment: data-rich test of offline → onchain user acquisition Diversification: complements Apple Search Ads and other digital funnels Earned media & social chatter: ~46K posts expected

Drawbacks: Modeled funnel performance may vary in real-world rollout Incentives require careful design and onchain verification to prevent abuse Easily checked against new wallets that have done a trade for the first time OOH channels are less iterative than digital, so creative/message testing is limited upon campaign launch

Funding: Total Campaign Cost: $60,000 in FOX DAO Ask: $50,000 FOX Marketing Workstream contribution: $10,000 FOX Vote For: Approve funding of $50,000 in FOX for the Napkin Ads pilot campaign. $40,000 may be converted for vendor payment, and $10,000 will be deposited into rFOX. For with changes Against: Do not approve funding for the Napkin Ads pilot campaign.