(Amazon) Prime time in web3

Here are a few predictions you might make if you buy the viability of this model:

My other issue with being too protocol focused is that if we can’t capture much value on the application layer, it will simply lead to shitty apps. As anyone who has tried to figure out how to navigate the world of web3 knows, we need to strive for vastly better and easier to use consumer applications than we have right now.

So the meta point here is that if web3 really is the future, I believe it will look remarkably less transactional than it is right now. We will need applications built on crypto rails to connect with friends, find restaurants, share photos, and so on. Those products will still feed the protocols underneath them, but they will also be expensive to b... See more

We will need applications built on crypto rails to connect with friends, find restaurants, share photos, and so on. Those products will still feed the protocols underneath them, but they will also be expensive to build and only possible if they can capture significant value on the application layer.Enter membership moats.

Tokenized versions of Prime will enable a number of different ownership models that further incentivize early adopters. Rather than offering their products for free until protocols emerge, smart consumer applications can leverage these models to create sticky behavior and strong loyalty. 

There are two main differences to call out in how Prime type memberships might work in web3. First is that rather than simply having members, we have owners. Many DAOs such as Friends With Benefits are already operating in this way - holding a certain amount of token grants you access to the suite of products and services that the DAO offers. Early... See more

Aggregation, acquisitions, and partnerships will happen at the product layer as much or more than in web2, even given an interoperable and composable landscape. People will want fewer rather than more Prime-like memberships, so established organizations with already successful products will have an edge on building or partnering with complementary ... See more

Those memberships will feel like Prime, where more and more of the products and services you need live under one umbrella. This will help make the UX of web3 feel less scattered.

I believe some of the leading consumer product business models in web3 will feel like Amazon Prime — membership bundles mediated via tokens.