Headless Marketplace: a market leveraging global (onchain) identity, money, and data while distributing locally, wherever a users wallet already is (e.g. inside a Telegram group chat or Farcaster feed)
Most marketplaces are destinations: users have to travel to a website or open an app, signup for an account, put in a credit card.
With headless marketplaces, the destination is wherever the users attention already is—and increasingly, thats where their $ will be too...
Thats because apps where users spend time are increasingly integrating crypto wallets (e.g. Telegram, Reddit, Warpcast)
That means users identity, money, data, will travel with them, and the friction to transacting will become much, much lower as a result.
Will Web3 end up like traditional open source, where (application) protocols end up as open source commodities, and products capture all the value on top?
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Last year I argued protocols that capture fees should buck against that future, and offered a strategy on how to do it:
- Engineering: How does it operate?
- Design: How does the user navigate and experience it?
- Go-to-market: How should it be distributed?
Executing on these questions should be grounded in an understanding of user needs.
If great products optimize for excellent user experience (UX) in addressing these needs, great tokens should optimize for a great ownership experience (OX).
But as noted in the original proposal, it was always meant as an MVP for something bigger.
If approved, that something could be UF.
The UF would serve a number of functions, including expanding the grants program, and providing deeper, hands on support for a decentralized ecosystem of developers, researchers, and governance participants
First, some backstory. “Sufficient decentralization” was coined by the SEC’s Williams Hinman. In 2018, he argued the Ethereum network had become sufficiently decentralized because no single, identifiable, coordinated group drove the protocol or value of ETH.
While much has been written on the “sufficient decentralization” of protocols themselves, Marc’s piece covers everything else around the protocols: development, BD, marketing, IP, governance, etc. Sufficient decentralization of off-chain activities.
At $150M, our third seed fund is sized for the dedicated focus of backing founders at the earliest stages + our $300M opportunity fund supports projects as they grow.