EN
June 29, 2026
Launched in 2023 by Warp Space Corp, Caveduck is an online platform for chatting with AI characters, allowing users to design, interact with, and share digital personalities through natural conversations. With a mission to help people connect with virtual friends across diverse themes, the platform quickly gained traction. Today, the app powers conversations globally, with major popularity in the US and over 800,000 users spanning the US, South Korea, and Japan.
Caveduck operates on a freemium model, giving users daily “Feathers” (the platform's basic currency) to chat with their preferred AI characters. Once those run out, users can purchase “Wings” (the premium currency) or purchase a subscription.
While the platform had built a dedicated user base with a clear interest in deeper AI interactions, the paywall created friction for non-paying users. With the majority of users relying on Caveduck’s free tier, a significant portion of the audience remained unmonetized. The company needed a way to extend the experience for non-paying users while still generating meaningful revenue.
Caveduck had already observed through its referral rewards program that users were willing to invest time in exchange for Feathers, signaling strong potential for a rewarded monetization model.
To act on this insight, Caveduck partnered with Mistplay and integrated the LoyaltyPlay gaming reward hub into their web platform. With LoyaltyPlay, users could earn extra Feathers by engaging with offers, giving them more ways to keep chatting with their favorite AI characters without having to pay – while Caveduck earned revenue on the engagements.
The solution expanded Caveduck's monetization strategy without disrupting the user experience, turning previously passive free users into an active and valuable segment.
Caveduck users were quick to embrace the rewarded model offered by LoyaltyPlay. By giving non-paying users a frictionless way to extend their experience, Caveduck improved satisfaction and unlocked a new revenue stream, achieving the following results:
“Thanks to Mistplay’s outstanding campaign quality, our web campaigns delivered a 134% revenue increase and a 66% lift in ARPDAU. Their mix of premium global advertiser campaigns, engaging game offers, and tailored AI chat solutions has been a perfect complement to Caveduck’s services, adding real value to our users and our business.” – Youngbin Kim, CEO of Warp Space Corp.
If you're running a freemium platform and looking to monetize your non-paying users like Caveduck did, Mistplay is ready to help. Reach out today to learn how LoyaltyPlay can open up new revenue streams while keeping your users engaged and satisfied.
