Crypto Has A Use Case

Marketplaces win if they can more cheaply attract demand/supply then their competitors and are then able to extract the most value possible from the network without increasing churn. Upwork did this via the press. Fiverr did it via viral growth loops. Braintrust does it with crypto.

Whenever Fiverr and Upwork want to incentivize someone to do something, they have to dip into their bank accounts and pay in dollars. Want someone to tell their friends? $10 referral bonus! Need a salesperson? $100K a year. When the DAO that controls Braintrust decides they want someone to do something, they can just pay in their native token. Thes... See more

Crucially, another freelancer marketplace could set everything up that Braintrust has done not on the blockchain. However, this would miss the narrative network effects to kickstart the market. Additionally, you would have to use fiat for initial growth rather than tokens, thus making acquisition more expensive.

I recognize that many people in web3 see low take rates as a good thing. I do not. I am of the controversial opinion that businesses exist to make money and businesses that can simultaneously have high retention and high take rates are vastly superior.

DAOs are bad: This is more of a personal gripe but DAOs are just a terrible idea to me. Has there ever, in the history of humanity, been an organization that thrived without a leader? Or one that was completely subject to the whims of the masses? A startup is so hard and tough that it requires an all-in leader who focuses exclusively on the thing. ... See more