The Intersection of 0→1 Product Management and NFTs: Exploring the Power of Scarcity and Social Capital

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Aug 15, 2023

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The Intersection of 0→1 Product Management and NFTs: Exploring the Power of Scarcity and Social Capital

In the world of product management, there are two distinct phases: 0→1 and 1→N. The 0→1 phase is focused on achieving Product-Market Fit (PMF) and rapidly iterating through the PDCA (Plan-Do-Check-Act) cycle. The goal is not just to improve the product by 10% or 20%, but to make a 10X leap in its quality. This phase is all about laying the foundation for future scalability and growth. While user numbers and revenue are important, the key is to gain the confidence that the product can be scaled in the 1→N phase.

On the other hand, the 1→N phase builds upon the achieved PMF and aims to scale the product to reach a hockey-stick growth curve. Companies like Netflix and Amazon have invested heavily in content and logistics, respectively, to enhance their unique value proposition and further strengthen their position in the market. This phase requires a focus on increasing the value and differentiation that cannot be easily replicated by competitors.

The concept of scarcity plays a crucial role in both 0→1 product management and the world of NFTs (Non-Fungible Tokens). In the case of NFTs, they make digital assets scarce, which in turn makes them valuable. The scarcity of high follower counts in social networks like Twitter is what gives them value. NFTs are starting to resemble a new kind of social network that operates above traditional platforms by leveraging the power of scarcity.

Humans are inherently status-seeking beings, constantly striving to maximize their social capital. Social capital is often a leading indicator of financial capital and influences various online behaviors. NFTs blur the lines between social and financial capital, as evidenced by the seemingly irrational purchases of digital assets for thousands or even millions of dollars. Each new social network issues a unique form of social capital in the form of tokens, which can be earned through proof of work. Over time, it becomes increasingly difficult to mine new tokens, creating built-in scarcity.

To navigate this evolving landscape, here are three actionable pieces of advice for product managers and NFT enthusiasts alike:

  • 1. Embrace the Power of Scarcity: Understand the value that scarcity brings to your product or digital asset. Identify unique features or aspects that cannot be easily replicated and focus on enhancing them. Scarcity creates a sense of exclusivity and drives demand.
  • 2. Harness the Potential of Social Capital: Recognize the influence of social capital on user behavior and engagement. Leverage social capital dynamics to incentivize users to contribute and participate in the growth of your product or community. Encourage them to become advocates and brand ambassadors.
  • 3. Foster Synergy between Social and Financial Capital: Explore ways to bridge the gap between social and financial capital. NFTs provide an opportunity to directly exchange social capital for financial capital, creating a powerful incentive for users. Consider integrating NFTs into existing platforms or building new projects that combine social and financial value.

In conclusion, the worlds of 0→1 product management and NFTs intersect through the concepts of scarcity and social capital. Both domains rely on unique value propositions and the ability to differentiate themselves from competitors. By understanding the power of scarcity, harnessing social capital, and fostering synergy between social and financial capital, product managers and NFT enthusiasts can navigate this evolving landscape and drive growth and success.

Sources:

  • "0→1 と 1→N のプロダクトマネジメントの違い|ぴかし|note"
  • "Status Monkeys"

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