Progressive Decentralization: A Playbook for Building Crypto Applications and Evolving as a Product Manager

Progressive Decentralization: A Playbook for Building Crypto Applications and Evolving as a Product Manager

Introduction:

Building successful crypto applications and evolving as a product manager both require a unique set of skills and strategies. In this article, we will explore the concept of progressive decentralization in crypto applications and how it aligns with the growth mindset and continuous learning required for product managers. By understanding the common points between these two domains, we can uncover actionable advice that can benefit both crypto founders and product managers alike.

The Three Components of Crypto Success:

Community participation and control play a crucial role in limiting platform risk and ensuring regulatory compliance in crypto applications. User-owned networks can foster a cooperative economic model that aligns better with users as the platform scales. Achieving decentralized community control is essential for transitioning from a security token to a non-security token, as reliance on the efforts of others diminishes.

Objective 1: Product/Market Fit:

Finding product/market fit is a top priority for both crypto founders and product managers. In the early stages, decentralization should not be a pretense but rather a core team driving product decisions to discover what users truly want. Launching a token prematurely can complicate compliance, so the focus should be on rapid iteration and understanding user needs.

Objective 2: Community Participation:

Once early signs of traction are evident, fostering harmony between passive users, active contributors, and the core team becomes crucial. Applying best practices from open-source projects can help create a sense of community ownership. Token distribution should be fair and effective, considering the contributions of both the core team and users. Rational modeling and workshopping proposals with community members can lead to better outcomes.

Objective 3: Sufficient Decentralization:

This stage signifies the achievement of early product/market fit, a robust community, and a sustainable operational model. Airdropping tokens to users and contributors based on a pre-defined plan can facilitate the transition to community ownership. By ceding majority ownership and mitigating platform risk, the application becomes community-owned and operated. Sustainable growth is ensured through cooperative economics, where user-owners align with the growing value of the service.

Actionable Advice:

• 1. Focus on Product/Market Fit: Prioritize understanding user needs and iterate rapidly to find product/market fit before considering decentralization. A working product is essential for building a real user community.

• 2. Foster Community Participation: Invest in building a strong community by applying open-source project practices. Ensure token distribution is fair and effective, taking into account the contributions of the core team and users. Engage in rational modeling and collaboration with community members for better outcomes.

• 3. Gradual Decentralization: Transition to community ownership gradually, once early product/market fit is achieved and a sustainable operational model is in place. Airdrop tokens based on a well-defined plan to facilitate the shift to decentralized governance and mitigate risks associated with a single entity.

Conclusion:

Progressive decentralization in crypto applications aligns with the growth mindset and continuous learning required for product managers. By understanding the common points and strategies between these domains, crypto founders and product managers can benefit from each other's insights. Prioritizing product/market fit, fostering community participation, and gradually decentralizing can lead to successful crypto applications and personal growth as a product manager.