We’re in dark times, again. And again… and again. How do we get out?
As it stands, we don’t. I’m as bullish on the future of this space as anyone but at our current trajectory we just don’t. It’ll take some major, monumental shifts in how we think about Web3. The problem is, even when presented with those shifts, VCs? Don’t care. Retail? Don’t care. What are the shifts you may wonder? Let’s examine in this multiple part introduction from MyStandard_Adam.
- Use cases that work for everyone.
- Revenue and a legitimate business that does not solely survive on the selling of its own native token.
- CT agnostic success and survivability.
_______Part 2 covers the next 4,5,6 _______
4. Token and equity value creation.
5. UI/UX that is easy to use, understand and fraud proof.
6. Wallets that protect users from scams.
_______Part 3 covers the next 7, 8, 9_______
7. Doxing or proof of legitimacy as a requirement.
8. S.E.C. resistant tokens that have functionality.
9. 10+ year horizons looked favorably over fast money.
Part 1
Let’s go through them in the framework of, today v how this could help.
1.Use cases for everyone. Most, if not all, of the tokens I’ve been most passionate about are inaccessible to the majority of people on the planet. Crypto, outside of a few exceptions, lives and dies within the walls of crypto. When a project has rousing successes another one is likely falling. For the most part, we are here:
This isn’t sustainable. The big joke is that we’re going to all survive to the next bull run. Bull run is code for lots of ill-informed retail hear that you can get rich in crypto and buy ‘our bags’ later than use and then we sell on them. Making them future bagger holders waiting for the next wave to do it to the next fool. The floor of crypto is ever rising from the waves of new bag holders while the market cap fluctuated in the trillions as experienced bag holders understand the importance of selling and they do a lot of it.
So, what does the benefit of a use case that works for everyone mean? It means we have no more crypto bros. It means the line of web2/web3 is faded and fuzzy. It means web2 users who mock web3 today (I guess rightfully so but w/e) will use web3 tech and not even know it. It means that we are using software that does things we like and don’t care to look under the hood to see how it works. Do you examine the code that makes Microsoft Word work? Do you care? You just want it to function. How can someone go on CNN and say “Web3 is over, it’s a scam” while simultaneously getting value out of web3? Sounds like a dream. Sounds like something that can change perceptions.
2.Revenues!? Bootstrapping your utility token to build a business that eventually makes revenue and then abandoning the utility token is surely not the way to avoid the S.E.C. When you see a token’s founders bragging about a massive runway — 4–5+ years — they most likely have sold so much of their token that you, the steadfast bag holder, are left to wonder when is their hopeful revenue machine going to turn into token value. Buy backs? Burns? Revenue Sharing mechanics? I mostly consider these marketing gimmicks and the SEC hates all of those (but they also are reluctant to let us know what they do like). How can Web3 companies, with a token, survive if not for selling their native token on retail? R.E.V.E.N.U.E.
Revenue requires clients. So who are Web3’s current clients? Tax paying, fee paying Web3 users. Want to buy that new shiny token? 5% tax. Want to sell it? Another 5% tax. Want to trade on the platform? % Fee… and % Fee every day you keep that 50x leveraged position open. Liquidity provider fees, borrower fees, lender fees etc… I’d post the snake picture again here, but you get it. We’re mostly drawing in revenue on ourselves.
Let’s think of a world where a token has value outside of crypto and was there for needed outside of crypto and the people/companies buying the token brought new dollars into the space.
Imagine the shift in thinking if we built with the intention of bringing in revenues, which sustained the business and used the token with fresh web2 dollars, in web3. If we start building with this goal in mind, it will reshape what we’re doing here and once again, make this space respected and utilized.
3.Survive without CT. CT is a wonderful, life changing place. However, there’s a sentiment that if you aren’t able to capture the hearts and minds of crypto Twitter than your token is dead on arrival. What happens to a new token? Early buyers get their networks involved as soon as they can. They all meet in a telegram channel and form ‘the community’. The community then acts as soldiers of fortune and become the greatest shill army the world has ever known. If the token does okay the community is often referenced as to why — little regard for what is actually being built. “I am looking for sub $1mm market cap tokens with STRONG COMMUNITIES” is often seen tweeted on my timeline.
Tokens need to be able to survive even without CT knowing about them, people shilling them and telegram channels spamming “BUY THE DIP”. Dang, back to the snake… but because we’re eating our own, we’re essentially advertising armies to OURSELVES. Even if I go to Facebook and say, “Buy the 0x0 token, it has an amazing future.” I then have to take 3–4 hours to explain to anyone outside of this space how to go about doing this. It takes a LOT of work, and no one wants the responsibility if it goes bad or the golden handcuffs if it goes well.
Token creators need to start to think about increasing the accessibility of their token to people on ‘the outside’. Videos, instructions, integrations with new on/off ramps. I have some ideas here too about using service level contracts to buy the tokens for users…and save them from having to even ‘own’ them. Not going into details here on that but my point is, there are solutions that need to be well intentioned, planned and vetted. Imagine all the fresh eyes that your shill army can land and expand to with the proper strategy?!
After the first part of my 3-part series on how to save web3, you’ll notice a few themes (Snakeeeeee) and hopefully start to see how incredibly far we are from getting there — but we will.
Stay tuned.
