Product Design (Web3 Module)

Source note: The following is compiled from publicly available web information. Important clarification: the “SideKick Token (SK)” that launched on BNB Smart Chain in 2021 is entirely independent from the SK token discussed in this report for Sidekick Protocol (the LiveFi platform). The Sidekick Protocol SK token is newly designed for the LiveFi ecosystem.

Token Utility

The SK token plays multiple critical roles within the Sidekick ecosystem, designed to drive user engagement, incentivize creators, and enable platform value capture:

1. Governance rights: SK holders can vote on major platform decisions, such as feature‑update proposals and revenue‑distribution schemes, enabling community‑driven decentralized governance.
2. Economic incentives: Tokens reward creator output and active audience participation. A referral program encourages users to promote the platform.
3. Feature access: Holding SK can unlock advanced features, provide priority customer support, and grant access to exclusive events.
4. Medium of exchange: SK can be used for in‑platform tipping, NFT purchases, and other service payments.

The token’s multi‑functionality aims to create strong demand‑side pressure. By tightly linking governance, incentives, premium features, and in‑platform transactions to SK, Sidekick seeks to embed the token deeply into the core user journey, encouraging long‑term holding and reducing sell pressure. In this design, utility is the core driver of value: SK is not only a speculative asset but an indispensable part of the product experience. Users need SK to participate in governance, access advanced capabilities, and transact inside the ecosystem (tipping, NFTs), creating multiple reasons to acquire and hold SK and, in turn, sustaining token demand.

Value‑Capture Logic

SK’s value capture is closely tied to the platform’s revenue streams, forming a positive feedback loop:

• Trading fees: As trading volume grows, fee revenue increases. A portion of fees is used to market‑buy and burn SK, reducing total supply and supporting value.
• Premium subscriptions: Growth in paying users lifts subscription revenue and, where applicable, demand for SK when certain premium features require holding or paying with SK.
• Advertising revenue: Increasing traffic raises ad value. Ad income can be reinvested into the ecosystem, indirectly supporting SK.
• NFT royalties: More active NFT trading increases royalty revenue, which can fund creator incentives, further energizing the ecosystem and potentially boosting demand for SK.

The “Trading fees → Buyback & Burn SK” mechanism is a deflationary model that directly links platform success (volume) to token value appreciation. This creates a clear path for value accrual to holders and aligns their interests with platform growth. Many projects struggle to connect token value to core business drivers; allocating a defined share of fees to buy and burn SK establishes a transparent, direct accrual mechanism, making the token a primary beneficiary of platform activity and encouraging long‑term holding.

References:

• Coinlaunch (coinlaunch.space):
  • Sidekick Crypto Analysis | Rating, Review & Stats
• RootData (rootdata.com):
  • Sidekick — One‑stop live‑stream trading platform