added by Jason Badeaux · updated 2y ago
Web3 playbook: How token incentives can bootstrap networks
- Web3 changes the whole approach to bootstrapping new networks, since tokens offer an alternative to the traditional approach to the cold-start problem. Rather than spending funds on traditional marketing to entice and acquire potential customers, core developer teams can use tokens to bring in early users, who can then be rewarded for their early c... See more
from Go-to-Market in Web3: New Mindsets, Tactics, Metrics - a16z crypto by Andreessen Horowitz (AZ)
sari added
sari added
Alex Wittenberg added
- By now it should be obvious that tokens aren’t a magic bullet — there are no shortcuts to building a network. Networks that just need passive participation from users can use tokens as one tactic to overcome the cold start problem. But networks with active participation can be harder to bootstrap. In these cases, token rewards can incentivize behav... See more
from Bootstrapping Web3 Networks: The Limitations of Token Incentives by Sameer Singh
Alex Wittenberg added
- The opportunity in Web3 is to leverage tokens and the underlying decentralized tech to build and bootstrap these new networks.
from The New Creator Economy by Femstreet
Danielle Vermeer added
- Incentive DesignTokenomics are a tool for aligning the incentives of participants in a network. It is extremely important to identify what behavior is required from each participant in an ecosystem in order for the network to achieve a virtuous cycle. Equally important is designing suitable token incentives that encourage the desired market behavio... See more
from Introduction to Tokenomics by Zach Zukowski
Tekelala added
- To summarize, tokens can certainly play a role in building a network, but they are not a GTM motion in themselves. Pay attention to the kind of network you’re building and how token incentives interact with network utility before relying on them as a bootstrapping solution.
from Bootstrapping Web3 Networks: The Limitations of Token Incentives by Sameer Singh
Alex Wittenberg added
- At a high level, the only way to address this problem is to link token incentives to network utility, i.e. ensure that users can only receive token incentives if they add value to the network. In other words, rewards need to be restricted to specific, desirable actions, not just adoption.
from Bootstrapping Web3 Networks: The Limitations of Token Incentives by Sameer Singh
Alex Wittenberg added