Definition ∞ User Acquisition Cost represents the total expense incurred by a project or platform to gain a new user, encompassing all marketing, sales, and promotional expenditures. In the crypto space, this metric is crucial for assessing the economic viability and scalability of decentralized applications and services. It helps evaluate the efficiency of growth strategies.
Context ∞ The discussion surrounding user acquisition cost in Web3 is becoming increasingly important as projects compete for adoption in a crowded market. A key debate involves balancing high initial incentives with sustainable long-term user retention strategies. Future developments will likely include more sophisticated attribution models that account for on-chain activity and community-driven growth, moving beyond traditional advertising metrics.
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