"The Ownership Economy 2022: Boosting Growth and Building Remote Cultures"

"The Ownership Economy 2022: Boosting Growth and Building Remote Cultures"

In recent years, the concept of the ownership economy has gained significant traction. It not only offers builders a powerful tool to leverage market incentives and jumpstart new networks but also holds the potential to create positive social change through the wider distribution of wealth-building assets. The ownership economy is all about transforming users into owners, and it is set to define the next generation of the internet.

With over 15,000 projects in the ownership economy, ranging from user-owned financial markets to user-owned social networks, investment clubs, and digital assets, the market is rapidly expanding. As of April 26th, 2022, the market capitalization of tracked tokens is a staggering $1.76 trillion, and the largest cryptonetworks, such as Bitcoin and Ethereum, continue to dominate the landscape.

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 they must be coupled with strong product-market fit. Solving a widespread need for users is crucial to sustain usage. Additionally, liquidity remains a strong motivator for users when choosing a marketplace. Ensuring that ownership does not crowd out intrinsic incentives is vital, as extrinsic motivations can undermine intrinsic motivation. Token incentives need to be carefully optimized to preserve users' intrinsic motivation.

In the ownership economy, new token distribution designs are emerging to boost user loyalty. Axie Infinity's player retention is a testament to the effectiveness of these designs. While liquidity mining programs have historically driven short-term participation, they have not contributed to long-term sustainability. To foster long-term engagement, projects like Curve and Gro are introducing lockup periods and vesting mechanisms. This shift towards contributor growth rather than just deepening liquidity is essential for the ownership economy to expand its user base.

User ownership also fosters richer ecosystems of projects and contributors. The permissionless nature of these projects attracts users, creators, and developers who build around and on top of them. CC0 NFT projects, for instance, extend the definition and possibilities of ownership by enabling free use of assets. This approach stimulates building, creation, and collaboration, reinforcing network effects and creating a disincentive to switch to other blockchains.

Furthermore, the ownership economy allows users to become owners earlier and participate in value creation. Unlike traditional companies that take years to go public, web3 companies that launch tokens do so much earlier, allowing users to benefit from ownership and value creation sooner. Ownership is becoming a keystone of new experiences across all categories of software products, aligning with Chris Dixon's prediction that what the smartest people do on weekends is what everyone else will do during the week in ten years.

Building a remote culture is another crucial aspect of the ownership economy. Remote work has become increasingly prevalent, and companies need to adapt to this new way of operating. Job van der Voort, an expert in building remote cultures, emphasizes the importance of getting the nitty-gritty details of hiring and onboarding right. Providing new hires with the necessary tools, such as laptops, stable internet connections, and well-equipped work setups, is essential for their success.

While remote work offers flexibility, it's still beneficial to build concentrations of people in specific locations. These concentrations foster collaboration, as employees can easily interact and hire from their networks. However, communication becomes more challenging as a company grows. Instead of relying solely on recurring all-hands meetings, it is crucial to spend time documenting and writing announcements. This ensures that information is disseminated effectively and reaches all employees.

In conclusion, the ownership economy is revolutionizing the way we think about ownership, wealth distribution, and value creation. While user ownership can jumpstart growth, sustaining it requires strong product-market fit and careful optimization of token incentives. New token distribution designs are emerging to boost user loyalty and prioritize contributor growth. User ownership fosters richer ecosystems and reinforces network effects. Additionally, the ownership economy allows users to become owners earlier and participate in value creation. Embracing remote work and building a remote culture is also essential in this new era. By incorporating these best practices, companies can thrive in the ownership economy and create positive social change.

Actionable Advice:

1. Ensure strong product-market fit: When leveraging user ownership, it's crucial to solve a widespread need for users to sustain usage. Tokens alone are not enough to drive long-term success.
2. Prioritize contributor growth: Focus on fostering long-term engagement rather than solely deepening liquidity. Implement lockup periods and vesting mechanisms to boost user loyalty.
3. Build a remote culture effectively: Provide new hires with the necessary tools for remote work and encourage collaboration through concentrations of people. Document announcements and communicate effectively to remote employees.