Web3 playbook: How token incentives can bootstrap networks

The Web 3 playbook: using token incentives to bootstrap new 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

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

Web3 protocols have an opportunity to do things differently, owing to the fact that they can distribute tokens to turn their users into owners, empowering them to govern the platform in alignment with their continued interests.

Web3 is the internet owned by the builders and users, orchestrated with tokens. 

 How do you “go to market” and convince potential customers to spend their money, time, and attention on your product or service? The response by most organizations in web2 — the Internet era defined by large centralized products/services like Amazon, eBay, Facebook, and Twitter, in which the vast majority of value accrues to

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