Progressive Web Apps on iOS are here: The Ownership Economy 2022 - Variant

Progressive Web Apps on iOS are here: The Ownership Economy 2022 - Variant

In today's digital landscape, the concept of ownership has taken on a whole new meaning. The rise of web3 and the ownership economy has transformed the way we interact with products and services on the internet. This article explores the intersection of these two trends and delves into the implications for users and businesses alike.

The ownership economy is all about empowering users to become owners. It encompasses both passive ownership, such as holding onto non-fungible tokens (NFTs), and active participation in decentralized applications. The Financial Times and Chainalysis estimated that there were 360,000 owners of NFTs in 2021, highlighting the growing interest in this form of ownership. Additionally, wallet providers like Metamask and Phantom have seen a surge in monthly active users, with Metamask boasting 32 million users as of February 2022 and Phantom reaching 2 million monthly active users in January 2022.

One of the key advantages of user ownership is its potential to jumpstart growth. Platforms like Uniswap, which make their users owners through governance tokens and LP shares, have a leverage to grow faster and bigger. However, sustaining user ownership can be challenging. The cost of acquiring users for consumer apps is high, making it difficult for apps without outside capital to take off. In fact, the average cost to acquire an app user was $3.52 in 2019. To sustain usage, tokens need to be coupled with strong product-market fit, addressing widespread user needs. Ethereum, for example, has outpaced other layer 1 blockchain ecosystems due to its network effects and mature developer tooling landscape, despite alternative blockchains offering lower fees.

The ownership economy is also driving new token distribution designs that boost user loyalty. Axie Infinity, a popular blockchain-based game, has demonstrated strong retention compared to traditional mobile games, highlighting the importance of digital ownership. However, the field of tokenomics is still in its infancy, with best practices around ownership distribution yet to be fully established. Token incentives often attract liquidity providers who are financially motivated by the highest rewards, leading to churn. As scholarship in token engineering and cryptoeconomics grows, the next generation of tokens is expected to more effectively engage users and incentivize long-term contributions. The focus will be on rewarding behaviors that contribute to a network's retention and sustainability, rather than solely rewarding early adopters or mercenary behavior.

The ownership economy also fosters richer ecosystems of projects and contributors. Shared ownership reinforces network effects and creates a disincentive to switch to other blockchains. This leads to a more vibrant and interconnected ecosystem, where projects and contributors collaborate and build upon each other's work. The ownership economy allows users to become owners earlier in the value creation process, enabling them to contribute to and benefit from the growth of products and networks. As Chris Dixon famously predicted, what the smartest people do on weekends is what everyone else will do during the week in ten years. Now, ownership is extending beyond digital assets like NFTs and into various products and networks.

In conclusion, the rise of the ownership economy and progressive web apps on iOS are shaping the future of the internet. User ownership can jumpstart growth, but sustaining it requires strong product-market fit. New token distribution designs are being explored to boost user loyalty, and the ownership economy fosters richer ecosystems of projects and contributors. As users become owners earlier in the value creation process, they have the opportunity to contribute to and benefit from the growth of products and networks. To thrive in this new landscape, businesses should focus on creating products that empower users to become owners and participate in value creation.

Actionable Advice:

1. Focus on strong product-market fit: When incorporating tokens or ownership models into your product or service, ensure that it addresses a widespread need for users. Tokens alone are not enough to sustain usage if the product does not provide value.

2. Design token distribution for long-term engagement: Take a granular and targeted approach to token distribution, rewarding behaviors that contribute to a network's retention and sustainability. Avoid solely rewarding early adopters or those engaged in mercenary behavior.

3. Foster collaboration and network effects: Build an ecosystem that reinforces network effects and creates a disincentive for users to switch to other platforms or blockchains. Encourage projects and contributors to collaborate and build upon each other's work, creating a vibrant and interconnected community.

In summary, the ownership economy and progressive web apps on iOS are driving a paradigm shift in how we interact with the internet. By embracing user ownership and incorporating tokens or ownership models into products and services, businesses can tap into the potential for growth and engagement. However, it is crucial to prioritize strong product-market fit, design token distribution for long-term engagement, and foster collaboration and network effects within the ecosystem. As the ownership economy continues to evolve, businesses that embrace these principles will be well-positioned to thrive in the new digital landscape.