The Double Edge Sword of Exclusivity in Product Management

The Double Edge Sword of Exclusivity in Product Management

In the world of social tokens and exclusive communities, there is a phenomenon known as the "Social Token Paradox." This paradox arises from the need for social tokens to appreciate in value by including new members, while also maintaining exclusivity to preserve the social and utility value of the community.

The paradox unfolds in several phases. In Phase 1, an exclusivity-based community is created using a social token, where membership is granted to individuals who possess a certain number of tokens. This creates a sense of exclusivity and social value within the group.

In Phase 2, early entrants to the community acquire tokens, causing the token's value to appreciate. The addition of new members further reinforces the idea of exclusivity and social value. This cycle continues until Phase 3, where the continued growth of new members starts to decrease the social utility and exclusivity of the group. However, the token price continues to rise as new members are required to acquire tokens.

In Phase 4, new members are incentivized to recruit more members to ensure the token's appreciation. However, as the community grows larger, there are diminishing returns in terms of exclusivity value. Finally, in Phase 5, members may sell the token for profit or due to the decreased exclusivity and utility of the community. This eventually leads to an equilibrium before the cycle starts again.

While exclusivity can bring value to communities based on shared purposes or goals, there are diminishing returns to growing an exclusive community. As more people join, the exclusivity and social value decrease. This concept applies not only to social token communities but also to product management.

In the realm of product management, exclusivity can be observed in various forms. For example, membership based on accomplishments or participation can bring together individuals from different communities into a single DAO or community. This tiered membership system allows for the recognition of achievements and fosters a sense of exclusivity within the community.

Another form of exclusivity is time-based membership. This type of membership aligns with long-term players and adds an element that cannot be easily gamed or financially purchased. By combining time-based membership with accomplishments or tasks that require dedication and effort, product managers can create a sense of exclusivity based on experience or service.

However, it is important to note that exclusivity should not only be based on financial factors. Allocating capital to activities, memberships, or other ventures is a matter of tradeoffs. Exclusivity should bring value to communities beyond financial considerations.

To be a great product manager, it is crucial to unlearn preconceived notions about product management and understand how strong product managers approach their work. Great products are those that solve real problems for users and customers in ways that they love and that also work for the business.

There are four big risks in every technology product effort, and as a product manager, it is your responsibility to address two of them: ensuring that what gets built is both valuable and viable. This involves product discovery, which aims to find solutions that are valuable, usable, feasible, and viable. It is important to differentiate between feature teams that deliver output and product teams that deliver outcomes.

Becoming a competent product manager takes time and effort. It usually takes about three months of real work to reach a basic level of competence, assuming you have a strong foundation and an experienced manager coaching you regularly.

In addition to understanding the fundamentals of product management, it is essential to appreciate the roles of design and engineering in technology-powered products. Design plays a crucial role in creating user-friendly and aesthetically pleasing products, while engineering ensures the feasibility and functionality of the product.

In conclusion, exclusivity plays a double-edged role in both social token communities and product management. While exclusivity can bring value and a sense of belonging, there are diminishing returns as the community grows larger. To navigate this paradox, product managers can implement tiered membership systems based on accomplishments or time, while also recognizing the importance of design and engineering in creating successful products.

Three actionable pieces of advice for product managers:

1. Embrace the paradox: Recognize that exclusivity can bring value, but also understand its limitations as the community grows larger. Find a balance between exclusivity and inclusivity to maintain social and utility value.

2. Foster a culture of recognition: Implement tiered membership systems that reward accomplishments and participation. This not only creates a sense of exclusivity but also motivates individuals to achieve more.

3. Collaborate with design and engineering: Understand the crucial roles of design and engineering in product development. Work closely with these teams to ensure that the product is both user-friendly and technically feasible.

By incorporating these actions into your product management approach, you can navigate the double-edged sword of exclusivity and create successful products that solve real problems for users and customers.