How to Use Tokenization to Drive Growth: 7 Lessons From a Company That's Killing It - Tascha Labs

How to Use Tokenization to Drive Growth: 7 Lessons From a Company That's Killing It - Tascha Labs

Designing a better reading experience with Matter

In today's digital age, businesses are constantly looking for innovative ways to drive growth and enhance user experiences. Two areas of focus that have gained significant attention are tokenization and designing a better reading experience. Both concepts have their own unique benefits and can contribute to the success of a company. Let's explore these ideas further and uncover some valuable lessons that can be learned from companies that have excelled in these areas.

Lesson 1: Get clear on what business you are really in
Tokenization has opened up new possibilities for businesses to innovate and improve their chances of success. One crucial aspect to consider is the underlying business model that can be combined with tokenization to create innovation. For example, companies like Sweatcoin have successfully used tokenization as a platform to help retail brands get exposure to a targeted audience. It's essential for founders to think beyond the surface level of their business and identify the key processes that drive profitability.

Lesson 2: Use tokenization to solve the cold-start problem
Tokenization can act as a "bridge loan" from users to get a project off the ground. However, it's important to ensure that the project is viable and solves a real user problem, even without the presence of a token. Tokenization should be seen as a tool to enhance the project's potential, rather than the sole solution for product-market fit. Progressive decentralization is a key concept to keep in mind during this process.

Lesson 3: Focus token incentives on KPIs that actually matter
Token incentives can be a powerful tool for driving user engagement and growth. However, it's crucial to identify the key performance indicators (KPIs) that truly impact the business's bottom line. For example, app engagement is a KPI that holds significant value. Founders should determine which user actions are most relevant for their growth and profitability and focus token incentives accordingly.

Lesson 4: Bring demand from outside the metaverse
Web3 projects that solely operate in the digital sphere may struggle to build a vibrant economic ecosystem to power product demand. To overcome this challenge, founders should explore creative ways to bridge the gap between the real economy and the metaverse. By bringing demand from outside sources, companies can tap into a wider audience and enhance their growth potential.

Lesson 5: Token utility is more important than limiting token supply
While limiting token supply can create scarcity and drive up value, the true value lies in token utility. By providing users with a fundamental incentive to keep stacking tokens, even without the opportunity to sell, companies can foster long-term engagement and loyalty.

Lesson 6: Protect projects from crypto market cycles in the early stage
Token liquidity in the secondary market holds immense value for projects, but it's essential to consider how market volatility may affect the core business. Founders should evaluate the potential impact and strategize ways to mitigate risks. Launching a token on exchanges from day one may not always be the best approach.

Lesson 7: Use staking to distribute value-added, not to solve token demand problems
Staking can be a powerful tool for increasing user engagement and loyalty. However, for staking yields to be sustainable, they should come from the business's profit rather than token emission. Sharing the benefits of project growth with users aligns with the web3 ethos and can contribute to long-term success.

In the realm of reading experiences, Matter has emerged as a frontrunner in designing a better way to consume information online. The founders recognized the need for smarter read-it-later apps that go beyond simple bookmarking. By integrating prioritization, resurfacing, and decay features, Matter aims to provide users with a more efficient and valuable reading experience.

Trust plays a significant role in deciding what to read, and Matter has prioritized elevating writers as first-class citizens in their system. By curating high-quality content and highlighting overlooked gems, Matter delivers a better experience for users. Their focus on needs that won't change aligns with Bezos' philosophy of prioritizing customer needs that have long-term relevance.

To cater to diverse reading preferences, Matter is exploring various avenues, such as audio consumption and newsletter integration. By incorporating features like audio highlights and highly reliable parsing, they aim to enhance the user experience and provide flexibility in how information is consumed.

Another key aspect of Matter's design is the emphasis on active readers. These users are intentional about their reading choices, curate their information diets, and actively seek out valuable content. Matter aims to increase the return on investment for readers, providing them with more insight, knowledge, and a sense of thrill.

In conclusion, tokenization and designing a better reading experience are two areas that hold immense potential for driving growth and enhancing user experiences. By understanding the lessons from successful companies in these domains, founders can unlock new opportunities and create innovative solutions. Here are three actionable pieces of advice to consider:

1. Identify the tried-and-true business model that can be combined with tokenization to create innovation and improve chances of success.
2. Ensure that tokenization solves the cold-start problem by focusing on a viable project that solves real user problems, with or without a token.
3. Define and focus token incentives on the key performance indicators that truly impact growth and profitability.

By incorporating these strategies, businesses can harness the power of tokenization and design reading experiences that cater to the evolving needs of users.