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The six phases to product-market fit in Web3

Published 02/28/2023, 08:00 AM
Updated 02/28/2023, 09:40 AM
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As the bear market of 2023 unfolds, the market is filled with tokens and projects on life support fighting to survive or retain value. Many of these projects, products and platforms differ from Web2 companies. They do not have focused teams to drive product-market fit (PMF). They use levers like incentives, tokens and a movement-centered approach to branding.

Web3 platforms can begin their product-market fit journey with the distribution of utility tokens via airdrops or bounties creating a community-operated workforce. Permissionless product innovation, leaderless movements (e.g., Bitcoin) and faceless branding are more nuanced than Web2 traditionalists would care to understand.

Progressive decentralization

Utility establishment

Utility momentum

Network effect alpha (Metcalfe’s Law)

Network effect beta (Reed’s Law)

The economic flywheel


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