Thread by @jkey_eth

1/15 #Web3 needs a new growth playbook.

There's no App Store, most users are pseudonymous, & no way to contact them.

Web3 growth will be defined by integrations, community, liquidity mining, & tokenomics.

A summary of The Web3 Growth Playbook by @lattice_fund for @ScribeDAO ⬇️

2/15 Web3 apps face three foundational challenges:

1) Identity: Vast majority of on-chain activity is pseudonymous.

2) Communication: Web2 channels like email, push notifications, & ads don't yet exist.

3) Platform limits: Web3 is constrained to crypto wallet users (~25M).

3/15 Web2 growth strategies assume potential customer identities are known.

Viral growth occurs on platforms with social graphs based on IRL identity.

Identity helps build target profiles.

Web3 breaks these assumptions as the majority of on-chain activity is pseudonymous.

4/15 Several teams are defining what identity means in web3:

@ensdomains makes ETH wallets (crypto "account") more readable.

@violetprotocol is bringing off-chain identity on-chain.

@arcxmoney launched a "DeFi Passport," giving users a score based on their on-chain activity.

5/15 There are no widely used crypto-native communication tools, which makes building growth loops difficult.

Web2 companies use ads to reach new users, email to reactivate churned ones, and push notifications to tell users about new products.

6/15 Web3 communication tools are even more nascent than identity ones:

@epnsproject is creating mobile push notifications based on on-chain activity.

@CyberConnectHQ is building a decentralized social graph for user-owned networks.

Others link web3 to web2 tools.

7/15 Platform dependencies limit web3 like it used to for mobile:

If you create a mobile app, your market potential is everyone with a smartphone.

Since nearly every adult has one, the constraint is abstract.

Web3 constraints are tangible b/c crypto wallets aren't mainstream.

8/15 Some products expanded beyond this market by abstracting away the wallet experience.

Others are trying to get users excited about blockchains and crypto.

@helium gets users excited about making $ via decentralized mesh networks.

@Coinbase gets users to try web3 products.

9/15 The pillars of web3 growth strategies are:

1) Partnerships: Negotiated transparently in governance forums, not boardrooms.

2) Token-driven growth pools: Leveraging a project's native token to drive growth loops.

3) User Ownership: Community is critical to network growth.

10/15 Partnerships are often permissionless & fall into many categories:

- Token utility: Driving liquidity via exchange listings.

- Distribution: Integrating with wallets & frontend aggregators.

- Lego Building: Leveraging other projects to get more utility for your product.

11/15 Web2 growth centered on building affordable & repeatable growth loops.

Just like VCs funded web2 marketplaces to scale, Web3 projects bootstrap growth using their token.

E.g. Liquidity mining - users provide capital to a project in return for a project's native token.

12/15 Web2 orgs focused on driving user loyalty via engagement & retention, while web3 orgs do so via user ownership.

Web3 users fund the products and services they consume, becoming owners.

13/15 Community is critical in network growth because users often become key stakeholders:

- Early customers, testing & improving the product

- Cheerleaders, distributing the project

- Builders, assisting with both technical and non-technical support

14/15 If you want more #web3 breakdowns just like this...

Follow me (@jkey_eth) to make sure a web3 growth thread shows up in your feed 😊