How do you balance Web3 values with market realities?

Clearly map out potential users as avatars/personas including pain points. This is key to ensuring compelling and consistent messaging across all channels. Where do they hang out? What problems do they have? What thought leaders do they follow? What tools are they using today? This information is key to utilize when marketing across all distribution channels. If a message doesn't resonate with a user, or is confusing, don't expect them to take action. From there, showing them how EASY it is for them to get what they want (solve their problem), using your solution. Simple words and UI/UX is absolutely essential.

Despite close to a decade of existence, web3 products are far from mass adoption. This is mainly because the desire to build technically remarkable products is overshadowing user concerns. For example, we built a simple multichain decentralised wallet that directly addressed many issues including complex user onboarding, lack of interoperability and others. Result? It garnered 100k downloads in 2 months. 🧠

For example to Indian users. India, with its diverse cultures and tech-savvy populace, embodies the multifaceted potential of Web3. The country's blend of urban youths who embrace decentralized protocols and business owners who recognize Web3's financial benefits resonates with the global Web3 trends. This understanding transcends mere adoption; it's about adapting Web3 to the distinct socio-cultural and economic fabric of India. For that prioritizing user-centric design and feedback, India ensures that Web3 applications resonate with its populace, reflecting their aspirations addressing their challenges, and tailoring innovations to the unique context.

The key here is to remember, not everything NEEDS to be solved by Web3 tech. Find out about your market’s problems first. Then, if advantageous, build the solution using the Web3 tech stack

This is definitely a salient point. The majority of current Web3 apps are complex and generally not intuitive enough for the average internet user. UX Design is one of the most pressing needs in this space, especially with regard to digital asset wallets and interactions with blockchains. These elements need to be simplified to pass the 'iPad' test, while not compromising the benefits of self-sovereign ownership of information and assets held by the user. This is no small feat.

Most of the efforts seem focused on showing and proofing what the tech can do and or focus on a web3 Davy audience. It is tech centered. For adoption to broaden we need more customer/audience focused initiatives that don’t sell the tech but that sell more value to the customer/audience than the same offer with no web3 tech.

At the core of understanding users(customers), it’s important to be cognisance to the fact that web 3 though largely an outcome of Decentralised movement is not necessarily confined to decentralised approach. I have had multiple debates on this and perhaps many would try to challenge this once again but I would like to urge you to look deeper. The core of blockchain comes from Distributed ledger technology and while Distributed approach facilitated decentralised it’s not confined to decentralised. If the web 3 businesses or startups looking at government and large enterprises as users (customers) it is imperative that they approach it from Distributed and not decentralised.

📱Build user friendly = Get mass adoption opportunity Connect an easy to be onboarded product with the right marketing and business development team, and you‘re more likely to succeed. The entry barrier for new users is still high. 🔓 Creating educational and entertaining content, while growing a community can be one step towards a successful mass adoption. 📗 Project that combine these strategies with influencer marketing, and cross-media marketing are more likely to succeed. 📈 In my humble opinion: 🙋🏻♀️ To get Web2 user, you need to train a familiar face (Influencer), create with them educational content, push the content to your community and on social, while working on additional relationships 🫱🏻🫲🏾 LET‘S GROW!

One of the primary challenges facing Web3 is its gradual divergence from market realities. For example, the internet didn't become popular solely because of its underlying protocols; rather, its popularity soared because industry giants like Google, Facebook, and Amazon harnessed the internet to offer consumers a top-notch user experience. The Web3 community must comprehend that its success hinges on delivering superior consumer experiences through its products. In the end, it's the product that resonates with consumers, not just the underlying technology.

Balancing Web3 values with market realities requires a delicate equilibrium, one that navigates the idealistic vision of decentralization, transparency and trustlessness with the practical constraints and opportunities of the real-world marketplace. Ethical decision-making becomes the lodestar, ensuring that choices made align with the welfare of the community and the broader ecosystem, even if it means forgoing short-term gains. Fostering a user-centric approach, emphasizing user empowerment and promoting transparency and community involvement are fundamental. It's a journey that involves continuous education and a strong sense of resilience, where the Web3 values provide the guiding North Star amid the ever-changing dynamics of the market

A key area with regard to interoperability is that of finance, more specifically the trading of tokens and other assets. There are now 20+ Layer 1 blockchains, with just as many Layer 2 chains coming online too. Each blockchain represents a single state, but this state does not easily scale out beyond the parent chain. this causes a multitude of issues for tradable assets, where pricing and liquidity can become detached especially where the same asset is deployed (and can be traded) on many different chains. Currently this fragmentation is controlled using arbitrage, but ultimately there is a need for cross-chain liquidity aggregators starting to solve these problems by consolidating liquidity from all chains into a single platform.

As much as its advantage is interoperability one should approach this with caution as inter operability between chains is also a window to vulnerability. I often find most web 3 products are in a hurry to make it interesting operable to as many chains as possible. Approach seems to be driven by the single agenda of being able to reach all the communities across chains. This is the opportunity Web 3 provides but if proper security measures are not taken and most times that is the case, vulnerability weakens the product’s value proposition. You better be valuable to few than a threat to all. Think about it!

Blockchain technology has a wide range of industry-specific use cases, but ultimately the primary benefits come down to data transparency and verifiability, smart contract execution, and decentralized consensus. Once blockchains used by different organizations and industries are able to interact with one another, independent markets and business applications that were previously considered entirely separate will be able to more easily transfer data and value. This means organizations and communities that wouldn’t typically interact with one another would be able to exchange information, leverage each other’s strengths, and cultivate innovation more effortlessly and effectively.

Get rid of the only plan to monetize web3 projects by selling off the tokens. Web3 offers MUCH more than that. For example, you can do a Freemium model completely built on-chain, and all the data will be trackable, so it's easy to verify. Forget fast cash overnight, when you're choosing the monetization strategy. Going step-by-step and leveraging the technology will give you the credentials and help to build trust.

With the revolution of CBDCs, monetization will become very easy soon. Token economy can lead the path to efficient implementation of CBDC.

This is one of the most important aspects of drawing up of one’s Tokenomics. Approach to draw framework for Tokenimics. 1. Identify all the stakeholders 2. Map their roles and contributions sincerely 3. Ascertain appropriate weightage to their contributions in overall value creation 4. Do a scenario mapping of value from and for each stakeholder 5. Draw up a value roadmap vis-à-vis the product Roadmap 6. Arrive at the over all opportunity 7. Map out a collective opportunity (considering each of the stakeholders) 8. Map out an addressable opportunity referring to point 5 9. Then arrive at your token supply 10. Then draw up the demand cycle and disbursement model. Make it a point to review it on a quarterly or half yearly without fail.

The Digital Rupee in India will drive the monetization model once released to the public. Right now, it is experimental only for the banks to banks in India.

Tokens can be a great way to test out new ideas at relatively low cost. ex: Rather than actual spending actual money on say generating hype or marketing for a new product/service you could use tokens instead.

Too many web3 products chargeing or selling tokens before there is a product or even resonably describe the purpose of its existance. This have eventually turning people off to adopt. However as the bear market presist better founders will produce better products. Tokenomics and charging should only start when the product actually does something useful

The emergence of Web3 and the metaverse has ushered in a new realm known as virtual economics, where individuals engage in economic activities within virtual worlds. In my view, true monetization lies in the convergence of blockchain, the metaverse, and the NFT space. This convergence has the potential to drive a substantial shift towards genuine business opportunities within the Web3 ecosystem

NFTs provide a way to differentiate and offer unique experiences that can help businesses and creators stand out and build stronger connections with their audience, even in crowded and saturated markets. NFTs can be used as digital assets to curate unique experiences for audiences such as providing exclusive access to content, merchandise, and more. This can help to build a sense of exclusivity and community among fans and make them feel more invested and connected to the business or creator. For example, a musician could release an NFT that grants the owner access to exclusive concert experiences or behind-the-scenes content. A clothing brand could release an NFT that access to a limited-edition product line.

Web3 monetization models present exciting opportunities, yet bring tax and accounting complexities. Tokens may introduce intricate tax considerations, while subscription or fee models necessitate diligent accounting. Tax implications, income recognition, and deductions need careful consideration. Staying transparent and complying with regulations, like AML and securities laws, is crucial. Web3's financial landscape offers new possibilities, but prudent financial and regulatory management remains paramount

Flexibility is key. As always in life, technology will evolve much quicker than laws and regulations. Do not stop adopting and implementing web3 values and technologies just because the regulation side is not clear; however, make sure someone on your team is following the news and even better, advocate for the regulations that will best benefit the ecosystem.

It is not a question if regulation will come, but when. The current bear market is a builder's market and the best time to prepare for it. ZK will play a big role. For example, Concordium is one of the most regulation-ready blockchains due to the ID component, which balances privacy and accountability.

In general some regulation will be good news but without dramaisation. US have been doing a bad job on this, creating drama for obvious aim to turn general public away from adoption. However the world is larger than the US. Many countries are providing support with appropreate guildines for both citizens and entrepreneurs. It is time to build!

This is becoming of paramount importance, moreover with the new MICA regulation in the EU market. Projects can't be anymore free hitter but rather follow specific rules and patterns so to be compliant and not avoid regulatory issues. This is a good thing for project as well, as they are on their way to be recognized as real world ones. This means becoming of interest for tech investors, business angels and funds, allowing web3 to becoming the tech stak behind every-day used products and services.

You might benefit from providing anticipatory guidance to your users and stakeholders about the potential risks in the underlying blockchain technology supporting your web3 initiative. Even the biggest and most popular blockchain ecosystems have gone through both regulatory and platform issues impacting many users. Have someone on your team dedicated to keep on top of them and avoid any surprises to your users.

With over 115 countries getting on to the CBDC bandwagon, blockchain is getting into the mainstream from the fringes. Most of the governments are moving into private chain for CBDC and while built on Distributed ledger technology they are all steering away from decentralisation. This should be an indicator for all the web3 players as which way the compliance is headed. While most countries don’t have clear compliance, few countries are taking advantage of this to attract web 3 ventures to be based out of their country with flexible compliances. As much as they provide an early opportunity to get started, it’s very important to be mindful of the way the things are changing globally and both tech and business model should be able to realign.

Web3 is made up of a decentralized community of not only technology but people. It's a web where people read, write and own content. Knowing that people are involved now more than ever, you'll be doing your brand good by learning from your Web3 community. This way, you know what they want, how they want it and why they want it.

Implementing the Snowball effect Addressing market realities in the web3 space is akin to building a snowball one flake at a time. Each challenge overcome, each innovation, and each user concern addressed adds a new layer, gradually forming a powerful, progressive ecosystem that rolls forward, unstoppable.

Strategy is important, and it should be checked regularly to understand if it needs to be tweaked according to the current market and regulatory landscape. This is because the Web 3.0 landscape is currently in a state of flux, especially with multiple regulatory measures taking place around the world. Financial considerations are important when dealing with market realities, but also important is to ensure to maintain ethical standards in your Web 3.0 strategy, and not let financial motives overshadow the ethical considerations. This includes consciously ensuring inclusion, diversity, sustainability and trust when moving forward.

Here are some tips: Remember the core values of Web3 - decentralization, transparency, community ownership. But recognize the need for pragmatism in a competitive market. Build mechanisms for community feedback and governance. But have a clear product roadmap and vision. Strive for open standards and interoperability between platforms. But ensure excellent user experience and convenience. Maintain ethical data practices and privacy. But leverage data insights judiciously to improve products. Promote inclusive communities and access. But recognize that early adopters tend to be tech-savvy. Aim for transparency in operations and processes. But protect sensitive information appropriately.

When breaking it down, one of the key values of Web3 lies in its evolved methods of engagement. Web3 shifts control back to the users (Ownership), transforms how brands interact (Interoperability, Composability), and creates opportunities for tailored user experience (Programmability). Consequently, the user engagement changes dramatically favoring the user. This represents a compelling evolution. I’m uncertain if we can maintain these methods in their purest form when mass adoption by Web2 brands and users begins. Web3 natives might accept some dilution in the process of achieving mass adoption. Despite some potential dilution, Web3 represents one of the most significant shifts in how we interact in future.