We are likely entering a 2-4 year period where founders — Web3 founders in particular — will overshoot in their reliance on token incentives to drive their communities. Like Charlie Munger, they are right, but not fully right. We will learn a lot from their experiments and mistakes, but if you want your project to succeed, don’t forget the heart.

Web3 in its current form is also exacerbating inequalities. Web3 projects commonly issue crypto tokens as digital representations of value. Early versions of token distributions have led to unsustainable dynamics wherein speculators are rewarded instead of those who are adding consistent value to networks through actual usage.