"The Ownership Economy 2022 – Variant: How User Ownership and Independent Thinking Shape the Future"

"The Ownership Economy 2022 – Variant: How User Ownership and Independent Thinking Shape the Future"

The ownership economy is a powerful concept that not only provides opportunities for builders to leverage market incentives but also has the potential to create positive social change through the wider distribution of wealth-building assets. In this article, we will explore the implications of the ownership economy in 2022 and its impact on various sectors.

The ownership economy is characterized by the transformation of users into owners. With more than 15,000 projects in this space, ranging from user-owned financial markets to user-owned social networks and digital assets, it is clear that the products and services that define web3 are those that empower users to take ownership. The market capitalization of tokens in this economy has reached $1.76 trillion, indicating the growing interest and adoption of user ownership.

However, while user ownership can jumpstart growth, sustaining it is more challenging. Simply giving users ownership is not enough to ensure the long-term success of a product. Tokens can capture user attention and drive initial adoption, but strong product-market fit is crucial to sustain usage. For marketplaces, liquidity remains a key motivator for users. The question of whether ownership crowds out intrinsic incentives to use a product is also important to consider. Extrinsic motivations, such as token rewards, should be optimized to preserve users' intrinsic motivation.

Innovative token distribution designs are emerging to boost user loyalty. Axie Infinity's player retention has remained strong over time, suggesting that engagement goes beyond the novelty of a game. Liquidity mining programs have driven short-term participation but have not contributed to long-term sustainability. New token incentives focus on contributor growth rather than just deepening liquidity. Curve's voting escrow contracts and Gro's vesting mechanism are examples of how token rewards can be structured to encourage long-term engagement.

User ownership not only fosters richer ecosystems of projects and contributors but also reinforces network effects. Permissionless projects attract users, creators, and developers who contribute to the growth of these projects. CC0 NFT projects, in particular, extend the possibilities of ownership by allowing free use of assets, stimulating building, creation, and collaboration.

The ownership economy allows users to become owners earlier and participate in value creation. Web3 companies are launching tokens earlier in their lifecycle compared to traditional VC-backed companies going public. Ownership is becoming a keystone of new experiences across various software products, signaling a shift in how value is created and shared.

To think for yourself is crucial in navigating the ownership economy and staying ahead of the curve. It requires surrounding yourself with independent-minded individuals who challenge conventional beliefs. Cultivating a diverse network of people can provide different perspectives and insights. Reading history and understanding how things looked to people in the past can also expand our knowledge and help us uncover new ideas.

Independent-mindedness is a combination of fastidiousness about truth, resistance to being told what to think, and curiosity. It involves actively seeking ideas that subvert conventional wisdom and being open to counterintuitive concepts. Curiosity plays a vital role in discovering novel ideas and expanding our understanding of the world.

In conclusion, the ownership economy is transforming industries and empowering users to become owners. Sustaining user ownership requires strong product-market fit and careful consideration of intrinsic and extrinsic motivations. Innovative token distribution designs are emerging to boost user loyalty and contributor growth. User ownership fosters richer ecosystems and reinforces network effects. To succeed in the ownership economy, it is essential to think independently, surround yourself with diverse perspectives, and embrace curiosity.

Actionable advice:

• 1. Focus on product-market fit: Ensure that your product solves a widespread need for users to sustain usage and adoption.

• 2. Optimize token incentives: Consider the timing, magnitude, eligibility, and other factors of token rewards to preserve users' intrinsic motivation.

• 3. Cultivate independent thinking: Surround yourself with independent-minded individuals, seek diverse perspectives, and actively embrace curiosity to discover new ideas.

In the ownership economy, users have the opportunity to shape the future and participate in the value they create. By embracing user ownership and independent thinking, we can unlock the full potential of this transformative paradigm.