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GD1 Investment Notes — EarnOS (Web3 Fund 1)

20 November 2024Nawaz Ahmed
GD1 Investment Notes — EarnOS (Web3 Fund 1)

The Problem

The digital advertising industry faces substantial challenges. Global brands struggle with bot-dominated traffic, with estimates suggesting 25–50% of advertising budgets being squandered on fraudulent clicks and non-human interactions. Finding cost-effective creator partnerships and managing GDPR compliance complicate acquisition funnels, yet brands increasingly demand results-based marketing solutions.

The Solution

EarnOS transforms the $1T digital advertising landscape by realigning incentives toward guaranteed, results-based marketing. The platform abstracts Web3 complexity entirely — enabling users to create wallets, complete brand missions for USDC rewards, and spend via an EarnOS debit card without any direct blockchain interaction.

During beta testing, the platform achieved significant milestones: 5 global brands, over 300,000 verified users, and 3.2 million brand outcomes. The zero-cost growth model compensates creators based on mission completion effectiveness, with brand advertising budgets funding expansion.

How It Works

EarnOS employs multiple engagement mechanisms:

  • Questing: Users earn rewards for brand engagement, such as sharing user-generated content.
  • Vampire Attack: Targeting competitor users for conversion using zero-knowledge proofs.
  • Loyalty Airdrop: Directly rewarding loyal customers on-chain.
  • Creator Verification: Rewarding creators for verifiable campaign contributions.

The platform uses zero-knowledge proofs via zkTLS technology — powered by GD1 portfolio company Opacity — to verify user identity and engagement on-chain. This is what separates EarnOS from every other rewards platform: the proofs are cryptographically verifiable, not self-reported.

The Team

The founding team brings together Wayne Hughes (Growth), Phil George (CEO), Tom Riordan (Product), and Reece Johnson (Engineering), drawing from backgrounds at Aave, Uber, BCG, Lens Protocol, and Typeform.

Why We're Excited

GD1's conviction in EarnOS sits on three pillars: the scale of the market opportunity, the quality of the beta execution, and the technological maturity of the underlying stack. The integration with Opacity's zkTLS technology demonstrates genuine portfolio synergy — and we believe it gives EarnOS a durable technical advantage in a category where most competitors rely on honour systems.

Author

Nawaz Ahmed
Nawaz Ahmed

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Investment Notes

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