The Ownership Economy 2022 – Variant: Re-Organizing the World’s Information

The Ownership Economy 2022 – Variant: Re-Organizing the World’s Information

In today's digital landscape, the ownership economy has become a powerful tool for builders to leverage market incentives and drive the growth of new networks. Not only does it have the potential to revolutionize the way we interact with the internet, but it also holds the promise of creating positive social change through the wider distribution of wealth-building assets.

The ownership economy encompasses a wide range of projects, from user-owned financial markets to user-owned social networks, investment clubs, and digital assets. These projects are transforming users into owners and reshaping the future of the internet. As of April 26th, 2022, the market capitalization of tracked tokens in the ownership economy is a staggering $1.76 trillion, highlighting the rapid growth and potential of this emerging sector.

However, while user ownership can jumpstart growth, sustaining it is a more complex challenge. Merely giving users ownership is not enough to ensure a product's success. Strong product-market fit is essential for sustained usage and user engagement. Tokens can be effective in capturing user attention and driving initial adoption, but they must be coupled with solutions that address widespread user needs.

One key consideration is the impact of ownership on intrinsic motivation. Some studies suggest that extrinsic motivations, such as token incentives, can undermine intrinsic motivation, particularly when users previously found the behavior intrinsically rewarding. To preserve users' intrinsic motivation, token incentives should be optimized in terms of timing, magnitude, eligibility, and other factors.

In the ownership economy, new token distribution designs are emerging to boost user loyalty. For example, Axie Infinity's player retention has remained strong over time, indicating that engagement goes beyond the novelty factor. While liquidity mining programs have driven short-term participation in new products, they have not historically contributed to long-term sustainability. However, new token incentives are now focusing on contributor growth rather than solely deepening liquidity, paving the way for sustainable user bases in the ownership economy.

Another advantage of the ownership economy is its ability to foster richer ecosystems of projects and contributors. Shared ownership reinforces network effects and creates a disincentive to switch to other blockchains. The permissionless nature of these projects attracts users, creators, and developers, who contribute to the growth and development of the ecosystem. Additionally, projects like CC0 NFTs extend the possibilities of ownership by allowing free use of assets, stimulating building, creation, and collaboration.

In parallel with the ownership economy, the need for boutique search engines is becoming increasingly apparent. While Google revolutionized information retrieval, it struggles to provide relevant answers to complex questions that require judgment and context. As users seek more niche and curated content, there is a growing demand for tools that aggregate and organize resources. Notion, Airtable, and Readwise are examples of platforms that cater to this need, but they remain fragmented and inaccessible to the wider public.

Google's main problem is the overwhelming amount of content available online. As it focuses on monetizing clicks, its search experience for users is compromised. Horizontal search engines like DuckDuckGo and Neeva aim to compete with Google by positioning themselves as privacy-focused alternatives. However, privacy alone is not enough to entice users away from Google, especially if it requires paying for a service they are accustomed to receiving for free.

Vertical search players like Yelp, Expedia, Zillow, and Behance emerged to fill the relevancy gaps left by Google. By using structured data specific to their industries, these platforms offer more targeted and relevant search results. However, monetization through ads often leads to ethically questionable design choices that erode trust. The opportunity lies in combining search and curation in boutique search engines, which offer searchable, curated interfaces tailored to specific industries or interests.

Curation, when focused on entertainment and feed-like architectures, lacks utility. The goal should be to move curated content feeds away from their time-bound orientation and towards goal-oriented interfaces. People should be able to find content on their own terms and not be limited by when curators decide to publish. Boutique search engines provide curated recommendations, leveraging both human curation and crowdsourcing to maintain high-quality content. By introducing new business models, such as subscriptions, these platforms can prioritize content quality over ad-driven monetization.

Incentivizing curators is a critical aspect of boutique search engines. While intrinsic motivation is the primary driver for contributions, layering extrinsic incentives can unlock new possibilities. Finding the right balance between intrinsic and extrinsic motivations will be key to scaling the number of curators without compromising signal quality.

In conclusion, the ownership economy and boutique search engines are reshaping the digital landscape. User ownership can jumpstart growth, but sustaining it requires addressing user needs and preserving intrinsic motivation. New token distribution designs are boosting user loyalty, while shared ownership fosters richer ecosystems of projects and contributors. Boutique search engines fill the gaps left by Google, providing relevant and curated content tailored to specific industries or interests. The future of the internet lies in empowering users as owners and curating information to enhance relevance and utility.

Actionable Advice:

1. When building in the ownership economy, focus on strong product-market fit to sustain user engagement beyond the initial adoption driven by token incentives.
2. Consider new token distribution designs that prioritize contributor growth over liquidity, ensuring long-term sustainability in the ownership economy.
3. Explore the potential of boutique search engines to provide curated, relevant content tailored to specific industries or interests, offering an alternative to the overwhelming scale of Google's search results.