Kickflips for Crypto: DEXs Incentivize Real-World Action as Institutions Stick to CEXs

Retail and quantitative traders are increasingly turning to decentralized exchanges (DEXs) to execute transactions, while institutional investors remain anchored to centralized exchanges (CEXs), according to Bitget. This divergence highlights the evolving dynamics in crypto markets, driven by technological innovation and shifting user preferences. Platforms like POIDH, a blockchain-based bounty system, exemplify the growing appeal of DEXs among retail participants and algorithmic traders, who leverage onchain incentives to drive real-world outcomes.

POIDH, an Ethereum-based platform, allows users to create and fund bounties for specific actions, such as breaking skateboarding records. The platform recently offered 10 million $DEGEN tokens to break the Guinness World Record for most kickflips in one minute. As of September 2025, over 2,500 bounties had been created, with 1,400 completed, according to a Dune dashboard. The system operates on a self-custodial model, where contributors can reclaim funds if a bounty is abandoned, and payouts are authorized via weighted voting based on the amount staked. A 2.5% fee is charged on completed bounties, a rate comparable to institutional fees on CEXs like Grayscale’s Ethereum Trust, which maintains a 2.5% management fee despite the launch of spot ETFs.

The platform’s reliance on decentralized governance mirrors principles of decentralized autonomous organizations (DAOs), enabling community-driven initiatives. Kenny, POIDH’s pseudonymous founder, emphasized the project’s aim to “organize humans to get things done in the real world” using crypto incentives. This aligns with broader trends in DEX adoption, where users prioritize transparency and autonomy over the centralized control of CEXs. However, challenges such as crypto price volatility—bounties fluctuate with Ethereum and $DEGEN values—pose risks for both creators and claimants.

Institutional investors, meanwhile, continue to favor CEXs for their liquidity and regulatory clarity. Grayscale’s decision to retain high fees for its Ethereum Trust, despite the impending launch of spot ETFs, underscores the persistence of traditional structures. Analysts note that institutional adoption of CEXs is driven by factors like ease of integration with existing financial systems and the availability of hedging tools, such as futures contracts. However, the rise of DEXs like POIDH suggests a growing appetite for alternative models, particularly among retail users and quants seeking novel use cases for blockchain technology.

The competition between DEXs and CEXs is likely to intensify as DEXs expand their capabilities. Platforms like POIDH demonstrate how blockchain can incentivize real-world activity, blending gaming, social media, and financial rewards. Yet, scalability and user experience remain hurdles for DEXs. For instance, the skateboarding bounty required participants to submit verified videos and navigate weather-related challenges, highlighting the practical complexities of decentralized coordination.

In conclusion, the crypto market is bifurcating between retail and quants embracing DEXs for their innovative potential and institutions sticking with CEXs for their established infrastructure. While DEXs like POIDH showcase the power of decentralized incentives, their long-term success will depend on addressing volatility, improving user accessibility, and competing with the regulatory advantages of CEXs. As the ecosystem evolves, the interplay between these two paradigms will shape the future of digital asset trading.

Source: [1] Kickflips for Crypto? This Project Will Pay $28K for a Guinness … (https://decrypt.co/341612/kickflips-crypto-project-pay-28k-guinness-world-record) [2] POIDH Offers 10M $DEGEN Bounty for Skateboard Kickflip World … (https://outposts.io/article/poidh-offers-10m-dollardegen-bounty-for-skateboard-kickflip-32171c84-75fd-48ce-95e3-6fbceafbe369) [3] Grayscale Maintains 2.5% Fee On Ethereum Trusts, … (https://99bitcoins.com/news/grayscale-maintains-2-5-fee-on-ethereum-trusts-expect-ethe-outflows-after-spot-etf-launches/)