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

The Web 3 playbook: using token incentives to bootstrap new networks. 🧵

NFX has proposed a similar idea called network bonding theory. According to this school of thought, tokens give early users a financial incentive to participate in a network. The addition of those users then allows the network to increase its utility and reach liquidity.