The world is witnessing an increasing number of blockchain projects in the digital advertising sector. Last March, the messaging app Telegram announced it would share 50% of its advertising revenue with users – channel owners who agree to participate in the advertising network.

This money is paid to users in the form of Telegram utility tokens. Meanwhile, businesses and brands that want to place advertisements on Telegram will have to transact using the platform's tokens.

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Telegram will share revenue with users on the platform. Photo: Media Mister

Currently, Telegram ads generate 1 trillion views per month; however, only 10% of that is financially profitable. By sharing advertising revenue with users, Telegram is encouraging them to be more active and become an important link in the ecosystem.

Previously, the model of sharing advertising revenue directly with users was initiated by the social network X (Twitter). However, unlike Telegram, billionaire Elon Musk pays X users in USD, a currency widely accepted in many parts of the world.

The tech industry is also witnessing the emergence of digital advertising platforms developed on a "watch to earn" model. On these platforms, users are rewarded with tokens for watching, interacting with, or participating in games.

We are seeing an increasing number of advertising business models based on a combination of social media and blockchain. However, similar to the previous "move to earn" and "play to earn" business models, these models are often questioned regarding their sustainability.

To be sustainable in the long term, these platforms must create and maintain value for their reward tokens. Otherwise, they will simply be short-lived projects.

Sharing his perspective on this issue, Mr. Phan Duc Trung, Vice President of the Vietnam Blockchain Association, said that in Telegram's case, developing a token based on a large community gives them certain advantages.

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Mr. Phan Duc Trung - Vice President of the Vietnam Blockchain Association. Photo: VBA

However, from the association's perspective, using tokens in online advertising activities does not offer benefits while posing many risks.

Due to fluctuating prices, token-based payments are inherently unstable due to exchange rate fluctuations. Meanwhile, the laws of many countries around the world do not accept, or even prohibit, transactions using virtual assets.

Commenting on the revenue-sharing model through user reward points, the Vice President of the Vietnam Blockchain Association stated that, from a personal perspective, he does not see any advantage in using tokens to calculate reward points.

According to this expert, the aforementioned advertising business models can all be developed using fiat currency (issued by the state), and therefore do not require blockchain technology. If blockchain technology can be avoided but is still used to follow the trend, it will only increase costs without delivering significant value.

Blockchain technology is only truly valuable for platforms with cross-border operations. Therefore, domestic advertising networks, media outlets, and publishing houses need to carefully consider the implications before applying blockchain technology to their digital advertising activities.

Vietnam could generate significant revenue from taxing Bitcoin and other virtual assets . The total value of cryptocurrencies entering Vietnam in 2023 was approximately $120 billion. Vietnam would benefit greatly if it taxed and established a legal framework to regulate virtual assets.