Betting on Consumer Tech’s Tokenized Future ft. Gaby Goldberg

Tokens may represent a net positive for consumers by reducing switching costs between platforms (incentives for early adopters). Low switching costs increases the emphasis on building good products that retain users. 

- gives ownership to users, incentivizes them to stay and invest moreCons of “social tokens”- puts pressure on creators to continue delivering value for token holders (akin to an “early IPO”)

Tokens aren't a silver bullet that make a product or business viable. In fact, tokenization creates its own set of challenges. For example, if you want stable recurring revenue, you can't rely on a tokenized membership model – this would require consistent sales of a token rather that consistent member dues.

Pros of tokenizing a platform:

Intrinsic and extrinsic motivators both exist and need to be carefully balanced. There is a long tradition of open-source development, and adding financial rewards can derail a project. (See: there is yet to be a successful "token-powered Wikipedia")

Four questions to ask about a platform (web2 or web3)1. Why do people come?2. Why do people stay?3. Why do people share?4. Why do people pay?It’s okay if people come for tokens, but it shouldn’t be the (only) reason that they stay.

Digital platforms used to bring our physical lives online, but now that we have uniquely digital experiences and relationships, we don’t have products that let us successfully bring those offline.