"The Ownership Economy 2022 – Variant: Understanding Engagement Levels and Fostering User Ownership"

"The Ownership Economy 2022 – Variant: Understanding Engagement Levels and Fostering User Ownership"

Introduction:
The ownership economy is not just a tool for builders to create new networks but also a means to distribute wealth-building assets and drive positive social change. With over 15,000 projects in the ownership economy, the focus is on transforming users into owners. However, sustaining user ownership and engagement is a challenge that requires more than just token incentives. Let's explore the key points and actionable advice to foster user ownership and understand engagement levels within the ownership economy.

1. User ownership can jumpstart growth, but sustaining it is more challenging:
   While user ownership can drive initial adoption, it is not enough to ensure long-term usage and success. Product-market fit and solving a widespread need for users are crucial elements in sustaining usage. Tokens alone cannot guarantee user loyalty, as liquidity and counterparty availability remain significant motivators for users in choosing one marketplace over another. It is also essential to consider the impact of ownership on intrinsic motivation and ensure that token incentives are optimized to preserve users' intrinsic motivation.

Actionable Advice:

• Focus on strong product-market fit and addressing users' needs to sustain usage.
• Optimize token incentives to preserve users' intrinsic motivation.
• Prioritize liquidity and counterparty availability to attract users to marketplaces.

2. New token distribution designs are boosting user loyalty:
   While liquidity mining programs have driven short-term participation, they have not contributed to long-term sustainability. New token incentive models are emphasizing contributor growth over deepening liquidity. Axie Infinity's player retention and other projects' success indicate that engagement goes beyond novelty and requires continuous value. Token locking mechanisms and vesting mechanisms can encourage long-term engagement and loyalty.

Actionable Advice:

• Emphasize contributor growth rather than solely focusing on liquidity.
• Implement token locking mechanisms and vesting mechanisms to encourage long-term engagement.
• Learn from successful projects like Axie Infinity to boost user loyalty.

3. User ownership fosters richer ecosystems of projects and contributors:
   Shared ownership reinforces network effects and attracts users, creators, and developers to build around and on top of projects. CC0 NFT projects, by enabling free use of assets, extend the possibilities of ownership and stimulate building, creation, and collaboration. As ownership expands, it creates a disincentive to switch to other blockchains, leading to the growth of interconnected and thriving ecosystems.

Actionable Advice:

• Foster collaboration and building within the ownership economy.
• Encourage the use of CC0 NFT projects to expand ownership possibilities.
• Focus on network effects and shared ownership to create a disincentive for users to switch to other blockchains.

4. The ownership economy allows users to become owners earlier and participate in value creation:
   Compared to traditional companies, web3 companies are allowing users to become owners earlier in their journey. This early ownership participation enables users to contribute to value creation and aligns incentives between users and the platform. Ownership is no longer limited to specific products or networks but extends to various categories of software products.

Actionable Advice:

• Consider incorporating ownership opportunities for users early in the product journey.
• Align incentives between users and the platform through ownership.
• Explore ownership possibilities across different software product categories.

Understanding Engagement Levels:

Engagement levels in a community play a crucial role in its growth and sustainability. The following insights help understand and address engagement levels within the ownership economy:

• Visitor Heavy: A large number of community members may remain at the visitor level, indicating a lack of perceived value in sticking around. Communities need to offer value beyond transactional support to attract and retain members.

• Core Heavy: Too many members at the core level indicate a lack of inclusivity for casual participants and one-off contributors. Communities should provide value at all levels to foster growth.

• Participation Bottleneck: Bottlenecks can hinder members' progression from one level to the next. Identifying and addressing these bottlenecks is crucial to ensure smooth transitions and encourage growth.

• Contribution Bottleneck: If there is a bottleneck between participants and contributors, it suggests a lack of skills or access for potential contributors. Empowering members and providing support and tools can unlock growth potential.

• Core Bottleneck: A bottleneck at the core level may indicate obstacles or a poor contribution experience. Improving the contribution process and addressing any negative experiences can encourage more contributions.

• Ideal Distributions: A healthy community should have a consistent difference in the number of members at each level, reflecting individual progression and growth.

• Steep Onramp: Communities based on specific knowledge or skills may have a steep onramp for moving members up to higher levels. Simplifying skill acquisition can help overcome this challenge.

• Shallow Onramp: A shallow onramp indicates quick and easy progression within the community. However, it may also suggest a need to reach a broader audience to attract more visitors.

Actionable Advice:

• Offer value beyond transactional support to retain visitors and attract new members.
• Ensure inclusivity and provide value at all levels to encourage growth.
• Identify and address bottlenecks to enable smooth transitions and growth within the community.

Conclusion:
The ownership economy holds immense potential for creating positive social change and empowering users as owners. However, sustaining user ownership and engagement requires more than token incentives. Strong product-market fit, optimizing token incentives, and prioritizing liquidity are essential for long-term success. New token distribution designs focused on user loyalty and contributor growth are boosting engagement levels. Furthermore, shared ownership fosters richer ecosystems of projects and contributors, reinforcing network effects and stimulating collaboration. Understanding engagement levels within the ownership economy is crucial for fostering growth and addressing bottlenecks. By taking actionable steps to enhance engagement and embrace user ownership, the ownership economy can revolutionize the way we interact with products and networks in the future.