coinsights #2: token incentives
Welcome! As Chris Cantino says, "if you're reading this, you're early." (to crypto in general but we'll pretend he's also talking about coinsights)
Web3 vs. Web2
Alex Lieberman, one of the founders of the Morning Brew newsletter, recently asked his ~170k or so Twitter followers for examples of web3 solutions that are 10x better than their web2 counterparts. In our opinion, the most compelling reasons were:
Accessibility: moving money cross border is much faster, cheaper and private
Single Login: people can sign in via wallet instead of having to remember many username/password pairs, and without being tied to a single company like Google
Shared ownership: tokens provide ownership, which creates aligned incentives for users and products
Tokens to bootstrap networks
Growing an internet based network is difficult, whether it’s social like Instagram or utilitarian like a telecom company. Creators of these networks are faced with the classic paradox: “someone won’t join unless there are already people there!” Chris Dixon, partner at VC firm a16z, wrote about a new way to capture early adopters in web3: token incentives.
Essentially, companies can create a token that grants its holders some utility and distribute them to early adopters. For example, a token could grant their holder some small cut of the revenue generated by the network. Early adopters are now transformed from “just users” to part owners, which incentivizes them to stay and help grow the network by contributing quality content, inviting their friends, and more.
Note: We’re trying to achieve something similar with Coinsights Tokens. Check out our charter here and start earning tokens!
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