The Ownership Economy 2022 – Variant: Why Creativity Flourishes in Japan

The Ownership Economy 2022 – Variant: Why Creativity Flourishes in Japan

The future of the internet lies in the ownership economy, where users have the power to become owners of the products and services they use. This concept has gained significant traction in recent years, with the rise of NFTs (non-fungible tokens) and decentralized applications. The Financial Times and Chainalysis estimated that there were 360,000 owners of NFTs as of 2021, showcasing the growing interest in ownership.

One key aspect of the ownership economy is the ability to jumpstart growth. Platforms like Uniswap, which make their users owners through governance tokens and LP shares, have the leverage to grow bigger and faster. However, sustaining user ownership is more challenging. The upfront fees for user acquisition can be hefty, making it difficult for consumer apps without outside capital to get off the ground. Strong product-market fit and solving widespread user needs are essential for sustaining usage.

Another interesting aspect of the ownership economy is the emergence of new token distribution designs that boost user loyalty. Axie Infinity, a blockchain-based game, has demonstrated strong user retention over time compared to traditional mobile games, highlighting the importance of digital ownership. The field of tokenomics is still in its infancy, with best practices around ownership distribution yet to be fully understood. However, as scholarship about token engineering and cryptoeconomics proliferates, we can expect the next generation of tokens to more effectively engage users and incentivize long-term contributions.

User ownership not only benefits individual users but also fosters richer ecosystems of projects and contributors. Shared ownership reinforces network effects and creates a disincentive to switch to other blockchains. Ethereum, despite the lower fees offered by alternative blockchains, remains the fastest-growing platform due to its network effects, mature developer tooling landscape, and ability to integrate with existing applications. This indicates that the ownership economy can lead to the creation of more robust and interconnected ecosystems.

Now, let's shift our focus to Japan and explore why creativity flourishes in this country. Japan boasts the third-highest GDP among OECD countries and has a large population. With efficient infrastructure, a focus on healthy living, and minimal crime, people in Japan have the freedom and peace of mind to immerse themselves in creative work. The Japanese language itself is flexible and expressive, incorporating concepts and characters from various cultures.

Greater Tokyo, the world's largest metropolitan area, provides a fertile ground for creative exchange. With a well-developed public transportation system, individuals can easily meet up and share their ideas, art, fashion, robotics, and more. Whether at large events like the Tokyo Game Show or informal meetups, creators have ample opportunities to showcase their work to a diverse audience.

What sets Japan apart is its unique approach to creative experimentation. For the past 50 years, even creators with no track record or financial resources have been able to test their ideas on a large population. This rapid, low-cost trial and error process allows creators to quickly determine which ideas resonate with the audience. In contrast, many other countries require a creator to have an established track record or special connections to access a large audience, often necessitating a significant financial commitment.

However, it's important to note that the Japanese manga/anime/IP industrial complex still plays a crucial role in supporting and promoting creative content. The industry's support helps content gain traction and virality amidst the vast ocean of online content. The Japanese government, along with the general population, is also open to the use of NFTs and supportive of the Web3 movement. This openness has contributed to the success of virtual YouTubers and the rising popularity of the metaverse in Japan.

While the shokunin attitude, characterized by the pursuit of mastery and perfection, can be seen as both a strength and a potential limitation to creativity in Japan, it undeniably leads to unique and unparalleled works of art. The combination of skills and dedication required to become a master in a particular craft results in creative works that are difficult to replicate elsewhere.

In conclusion, the ownership economy and the flourishing of creativity in Japan share common themes. Both concepts empower individuals to become owners and active participants in the value creation process. The ownership economy allows users to contribute to and benefit from value creation earlier, while Japan's creative ecosystem fosters experimentation and rapid iteration. To leverage these concepts in your own endeavors, here are three actionable pieces of advice:

1. Embrace user ownership: Explore ways to incorporate ownership elements into your products or services. This can range from implementing token distributions that incentivize long-term contributions to creating platforms that allow users to have a say in governance.

2. Foster a creative ecosystem: Encourage collaboration and exchange of ideas within your community. Provide platforms and opportunities for creators to showcase their work and receive feedback. By fostering a supportive and inclusive environment, you can nurture a flourishing creative ecosystem.

3. Embrace experimentation: Don't be afraid to test new ideas and iterate quickly. Take inspiration from Japan's approach to rapid trial and error, allowing you to identify what resonates with your audience and adapt accordingly.

By combining the principles of the ownership economy with the creative spirit of Japan, you can unlock new opportunities and drive innovation in your own endeavors.