4D details on how Web3 and brands are driving the next bull market

4D details on how Web3 and brands are driving the next bull market Opportunity for cooperation

Opportunities for collaboration between Web3 and brands

There is a common opportunity between Web3 and brands that urgently needs to break out of the circle. Web3 needs to find a value capture mechanism, as well as the transaction liquidity of productive economic behavior, through new storytelling and the construction of economic value in non- financial scenarios. Establish new marketing businesses with the help of emerging technologies to strengthen users’ recognition of brand value and consumer retention in a highly competitive market.

At present, the initial combination of brand and Web3 is through NFT . However, DID , DAO , SBT and many other models have not yet been applied. What this article will discuss is how we can truly use Web3 as a technology paradigm to achieve subversive effects on traditional brands. revolution.

Common needs of Web3 and brands

The core of the brand is the consensus of consumers on the brand, which enables consumers to establish an identity for the brand culture, not only to support the brand through consumer behavior for a long time, but also to be the spokesperson of the brand and to display products with brand symbols through public places and social media. , and actively carry out word-of-mouth communication for the brand, and is keen to become a brand evangelist.

Web3 is an enlightenment movement for the return of data property rights. Based on blockchain technology, the ownership of data public ledgers is maintained, that is, the collective “consensus” forms the maintenance of common value, and everyone becomes the co-owner of interest nodes. Based on its “consensus”, it changes the organizational relationship of a centralized structure and becomes a community with closer consensus and interests.

For Web3, it is necessary to find a scenario that reflects the productive economic behavior of collectively maintaining value consensus, rather than the financial scenario of encrypted currency , and for the brand side, it needs a reliable marketing path to achieve the effective construction and construction of brand consensus. maintain. Therefore, the common appeal of the combination of the two is to build a positive externality demand scenario with value consensus.

Web3 and the beginning of brand exploration

In the last round of the bull market, the marketing methods of Web3 and the brand mainly used the NFT method to build joint souvenirs, as well as the member rights and interests of NFT PASS. In fact, I remain skeptical about building a membership point system for the Web3 brand by adding NFT PASS and Token. Since Web3 is in the early stage of theoretical concepts and technical paradigms, it still lacks the support of the underlying technology to achieve large-scale marketization, which also leads to most brands not expecting Web3 to become a brand strategy, and more market hot spots. Build brand image.

At present, mature brands are more likely to cooperate with NFTs that have successfully broken the circle, such as the boring ape. In fact, this is not fundamentally different from the IP joint cooperation of traditional brands, while cc0 NFTs are too free and loose, and it is difficult for the community to form a collective A unified strong consensus to establish deep and long-term brand cooperation is more of a ticket-playing nature. Although the era of cc0 NFT flooding has not yet arrived, it is difficult for a decentralized community to penetrate into the brand marketing business. To put it simply, the current cooperation between NFTs and brands is mainly based on visual image and IP narrative as marketing, and has not yet achieved true integration from the foundation of Web3.

Diverging paths: Web3 native branding, or Web3 rebranding

In fact, many Web3 practitioners have also seen the market opportunity of combining Web3 with brands. However, there are two different routes in the development path. One direction is to explore the native brand of Web3, because the narrative operation of NFT itself is a A strong brand consensus can gradually realize the marketing and sales of branded products through the native Web3 consensus; the other direction is to realize the transformation of existing brands based on the Web3 model and blockchain technology. Web3 provides an auxiliary A tool for brand marketing.

It is difficult for us to judge which route is right and which route is wrong, but everyone has their own limited cognition and control resources to choose a certain direction for construction, and this article hopes to be able to devote themselves to this Web3 and the relevant practitioners of the brand provide valuable judgment basis.

misunderstanding

Common misunderstandings between Web3 and brands

In fact, due to the “metaphysics” of brand planning and the “sophistication” of Web3 vocabulary, there are many misunderstandings between the two parties. After all, Web3 is in the early stage of industry development, and the definitions of many concepts lack consensus in the industry. Everyone is fighting for the right to define and speak as much as possible. There is a sense of staking; for brands, complex supply Chains and sales channels, various marketing strategies and endless marketing tactics are also easy to confuse people outside the industry;

Therefore, Web3 practitioners and brand practitioners need to sit down and get to know each other, and understand each other in depth through effective communication to clarify misunderstandings. Next, I will sort out some misunderstandings between Web3 and brands according to five different dimensions. This part The content has been communicated with well-known brand experts in China. I would like to thank Brian, the founder of Brand Planet, for his support, and thanks to lightness.eth for his in-depth participation in the brand’s research, providing reliable information and support for this article. contribute.

Obvious misunderstandings on both sides

For Web3 practitioners, we at least need to sort out what Web3 can and cannot do? Just as the construction of Web3 is inseparable from the support of blockchain technology, which in turn gave birth to the cryptocurrency and Crypto industries. Crypto is different from Web3. Our positioning of Web3 is a technical paradigm, that is, building a value network for the return of data ownership, complete traceability of data on the chain, and confirmation of the production relationship of data on the chain, etc., based on the underlying logic of this technology. It has brought about tremendous changes at the social and commercial levels. Web3 inherits the idea of ​​encryption but is not completely equivalent to the encryption industry. The core of Web3 is a technical paradigm driven by values.

For brands, a confusing conceptual relationship is IP, culture, brand and category. From an outsider’s point of view, brands want to form their own brand culture by building IP, and then sell better. According to the different stages of development, brands have different development demands. For example, for most early brands, selling goods through various channels is the key. The brand is just a label, and the products under the brand are just a category.

The relationship between concepts such as IP, brand, category and commodity is different in different development stages of a brand, and the brand side often blurs the clear positioning of the concepts for marketing needs, making consumers or laymen People have wrong perceptions, which is helpful for merchants to improve their consumers’ emotional cognition, improve users’ reach rate and brand cognition rate of products, and achieve the marketing purpose of word-of-mouth communication and consumer repurchase.

For example, a new consumer brand with a brand label at this stage is actually a category-selling brand, and the user group accumulated by its sales channel is difficult to carry out the marketing construction of the so-called cultural and emotional identity, such as shaping the user’s identity through PFP NFT. Recognition and emotional recognition are unrealistic, because the current survival strategy of the brand is based on sales, and it is most sensitive to channel cash flow and profits, so it is appropriate to use NFT PASS as equity reward incentives to improve the efficiency of user repurchase solution. The actual business of the brand and the building of the brand often have different logics. Therefore, when the BUIDL of Web3 explores the brand, it is easy for us to enter the misunderstanding of the brand because of the marketing strategy of the brand.

The development demands of both parties for cultural consensus

Whether it is a brand owner or Web3, the demands for cultural construction are the same. Web3 is a technology industry dominated by the technical engineering movement and the community cultural movement. Cryptography has shaped the consensus mechanism at the technical level, and inherited the spirit of encryption culture. The choice of technical values, and high-quality organizations spontaneously and consciously participate in the process of community construction and governance with the consensus of a certain cultural movement. Web3’s appeal to culture is to shape consensus and enhance collective decentralization. And the value maintenance of cryptocurrencies.

On the surface, the brand’s appeal for culture is to enhance the brand’s tone, but in fact it is mainly to serve its target users. Brand culture provides a spiritual and emotional demand that goes beyond the materiality of commodities, and this emotional connection is the brand The unique relationship with consumers is the unique charm of culture in business. Brands rely on culture to form a closer relationship with consumers, so that consumer users become long-term loyal fans of the brand, and then obtain long-term and reliable customer groups.

The development demands of both parties for the governance mechanism

Every Crypto or Web3 community hopes to be a natural DAO organization, with a decentralized organizational structure, a flat collaborative approach, a governance method where everyone can participate in voting, and a free and democratic way to achieve decentralization of power, and Decentralized consensus of power is maintained through the blockchain.

For the brand side, it is sensitive to the decentralization of governance power. After all, the brand side is a profit-oriented business entity, and the positioning of the brand is the core asset of the business entity, that is, the core interest. Brands are willing to achieve limited common governance from the level of cultural co-construction, and thus provide corresponding equity incentives. The common governance of Web3’s radical brand operation is almost impossible, that is, it is impossible for the brand to jointly manage the ownership of assets in the form of DAO, but it may be further possible to participate in the joint use of assets and the right to benefit. Governance.

To sum up, the ultimate goal of governance of an idealistic Web3 community is to do everything possible to achieve unlimited co-governance, while for a realist brand side, the fundamental appeal of its governance is to maintain the core interests of the brand side. Limited and conditional co-governance.

The development demands of both parties for marketing tools

At this stage, various tools of Web3 serve more native on-chain needs, because only tools involving native data on the chain can realize the value capture of the encrypted economy, such as investment and research tools for tracking and analyzing on-chain transaction data, DAO governance tool based on on-chain interaction. However, for an external market, Web3 still lacks a systematic tool or platform, which constitutes a business closed loop of business processes. For example, the operation of a DAO requires the use of a variety of different tools. These tools are scattered, and when it comes to on-chain transfers and data management, it is even more troublesome.

Brands are unfamiliar with most of Web3’s tools, because Web3’s on-chain tools and the Internet where the brand’s consumer users are located are two different network environments. In a simple analogy, the Web3 context we’re talking about in the eyes of regular Internet users is that we’re players in another world. For the brand side, what is needed is a tool that ordinary users can perceive in the use environment of the Internet.

Although many start-up teams who have graduated from Web2 and joined Web3 are trying to optimize and improve the product experience in the way of Web2.5, they cannot smoothly realize the user experience requirements of Web2 when it comes to the interaction between signatures and wallet assets. Don’t make me think

Different core interests of the two sides determine different routes

For the Web3 project party, it must be more favored to build a Web3 native brand, because the native data on the chain has extremely high value, and the competitive advantage of Web3 practitioners can reflect the cultural consensus through technical means in the form of product media. However, most Web3 teams do not have the ability and resources to build a brand, especially the ability to integrate supply chain resources and business of branded products, and the test is the ability of another entrepreneurial path. Of course, it is not ruled out that a Web3 team with strong relevant capabilities and resources can handle this matter.

For traditional brands, relying on Web3 to maintain their core interests is the only way for brands to accept Web3’s marketing demands. Just as Nike earned $185 million in NFT revenue, it captured the brand’s popularity in Web3 through blind-box marketing. Profits, but it is absolutely impossible to operate the Niek brand as a DAO. Brands want Web3 to serve themselves, not All in Web3.

Web3 and brands come out of their own core interests and must go in different directions of development.

cultural consensus

Web3 and the brand in the business closed loop of cultural consensus

Although Web3 and brands may go in two different development directions, the business closed loop of building cultural consensus is the same. How to expand consensus, deepen consensus and achieve sustainable development of consensus is the common purpose of Web3 native brand or Web3 transformed brand.

Through the example in the figure below, the economic foundation determines the superstructure, expanding consensus, deepening consensus, and consensus sustainable development are inseparable from the guarantee of basic interests.

4D details on how Web3 and brands are driving the next bull market

 How to expand consensus

  • The purpose of expanding the consensus is to attract new brand users, so the basic logic of expanding the consensus is to obtain the initial value recognition based on the brand culture communication based on equity incentives;
  • Equity incentives need to be bundled with cultural media for dissemination, and rights and interests are not only equal to preferential discounts, but also the value expectations of consumers for the brand;
  • When the product is purchased and accepted by consumers as a cultural medium, the brand is recognized in terms of value;
  • Consumers who purchase goods can activate NFT PASS, which is not only an economic incentive, but the key purpose is to guide consumers to collect the full version of PFP and realize self-identification of brand identity.

* The purpose of expanding the consensus is to shape the identity of users to the brand, and how brand products are accepted by consumers as a cultural medium is the key;

How to deepen consensus

  • Building a community of interests is a prerequisite for deepening the collective consensus of brand consumers;
  • Rewards are obtained through collective collaboration and labor contribution, forming a positive feedback mechanism for collective activities;
  • Participating in the process of synergy is endowed with a certain honor for contribution, and the initial creation of cultural identity is gradually formed. How to form the re-creation of cultural consensus in the process of synergy is the key problem.
  • Collective synergy and cultural creation have formed a specific common cultural language and symbols exclusive to small groups. The emergence of native culture from the crowd is the key condition for judging the cultural vitality of this group.
  • The re-creation of culture has made the deepening of consensus into a real positive feedback loop, from economic incentives, empowerment, and honorary titles, etc., in fact, among the internal groups, the social capital of “money, power, and reputation” has been built. system
  • When a set of internal social capital system is formed, it is conducive to further forming a closer community of interests;

Consensus Sustainability

  • The economic base is the precondition for everything, so the public treasury is an indispensable sine qua non;
  • The accumulation of NFT PASS to a certain level can activate PFP and participate in the governance and contribution of DAO.
  • The funds of the public treasury come from the consumption of consumers who have not yet obtained the identity PFP. For consumers, a part of the profits from the goods they buy is invested in a huge fund pool that consumers can participate in, which will attract users to participate in among governance contributions.
  • The continuous collaborative governance and contribution of the community of interests based on public funds has actually further deepened the collective consensus, and the cultural re-creation of the collective consensus itself will further promote the expansion of cultural consensus.

* The sustainable and effective construction of cultural consensus comes from collective interests, and how to achieve cultural re-creation is the key problem for the sustainability of consensus.

Business closed loop based on ( DID+NFTs+DAO )/ Token to achieve consensus

When users have not accumulated enough assets and lack awareness of digital identity, through NFT PASS, while gradually increasing users’ public assets, they gradually educate and guide users. The way of centrally hosting wallets realizes the basic perception of consumer users on the value of NFT equity. As the unlocked fragmented NFT accumulates to a certain extent, the identity of PFP as a participating brand can be obtained. Therefore, from the perspective of marketing design, the progressive rights of NFT PASS should be combined with the fragmentation of PFP, and a PFP should be obtained by opening a blind box, and guide it to complete the DID registration guidance.

After completing the DID registration, users can participate in the governance of DAO, and as users participate in the contribution of governance and co-creation, the corresponding governance Token is incentivized in the form of SBT. When a user participates in a contribution activity, they first receive a certain equity NFT, which is bound to the governance token of SBT. When the SBT of the equity reaches a certain amount, the user can convert it into an equity exchange by destroying the NFT. Get financial incentives. When users continue to accumulate SBT under a certain equity without exchanging them, they can obtain the corresponding governance power when they reach a certain level.

As a kind of NFT with symbolic medium, Loot can become an additional attribute of identity and give users the corresponding governance power. The particularity of Loot is that it can be used as a symbolic medium for the senses, as a symbolic system created by culture, or as a symbolic system created by culture. Factors attached to identity attributes. The re-creation of the Loot paradigm is the key to forming the DAO’s cultural symbolic consensus.

In order to realize the establishment of this closed loop, it is necessary to solve how consumers gradually enter Web3 and the consensus of DAO governance based on cultural symbols. OK, below we will discuss how to achieve the gradual entry of consumers into Web3.

cultural symbols

How Brand Consumers Are Embracing Web3 Incremental

Consumers can get the opportunity of Mint NFT when they buy goods. Consumers can enter the Mint NFT page by scanning the code, authorize a third-party account or mobile phone to register, and obtain a central account for receiving NFT. Use third-party account authorization on the current page, WeChat can be used in China, Twitter, FB, etc. can be used overseas, and secondly, mobile phone and email are supported to register and log in. This method can solve the concept of consumers first contacting NFT, rather than coming It is necessary to register and log in the mnemonic phrase.

In the early days, the user’s NFT was hosted by the central platform. With the increase of user assets and more business upgrades, the user was gradually guided to the registered DID account. Consumers can get the opportunity of Mint NFT when purchasing goods. Consumers can scan Enter the Mint NFT page in the form of a code, authorize a third-party account or mobile phone to register, and obtain a central account for receiving NFT.

Consumers need a gradual process from contacting a brand, understanding a brand to recognizing a brand, so we need to divide the NFT strategies adopted in different stages should be different, and the purpose of this strategy is to transition consumers from the central account to a decentralized account.

A consumer user purchases a brand for the first time and completes the NFT Mint of a centralized account under the guidance of marketing methods. This stage is divided into a contact period. Consumers who activate the centralized account Mint NFT for the first time can activate the NFT PASS benefit series.

NFT PASS adopts a non-transferable point system and transferable POAP, and consumers can be given certain preferential rights and interests, such as 50% off, discounts and other welfare discounts after subsequent repurchase of POAP. If the consumer himself does not need it, it can be transferred to someone else.

Consumer users can continue to obtain Mint NFT opportunities for subsequent repurchase using the same account. Mint’s NFT in the repurchase stage is a POAP type NFT. The POPA serves as a consumption-type preferential benefit and also accumulates non-transferable points for the NFT PASS. This stage is divided into an understanding period.

In the understanding stage, each POAP needs to undertake the task of user education and guidance. Each POAP can be exchanged for the fragments required by PFP by consuming the corresponding points. If you need to collect 5 pieces to activate the PFP, then each POAP should bear the benefits of educating users on activating the PFP, and guide the registration of the DID account. Several steps from centralization to decentralization can be achieved through POAP’s task mechanism.

When consumer users start to consume points to exchange POPA and obtain PFP fragments, this stage is the approval period. When the collection of all PFP fragments is completed and the Mint of the PFP is performed, the consuming user needs to complete the registration of the DID, and complete the Mint of the PFP through the DID account address.

Consumer users have completed the transformation from centralization to decentralization, and obtained the data sovereignty of digital identity. This process requires certain strategic design in marketing, as well as the reflection of interactive rituals of spiritual inheritance. residency rights.

When a brand consumer officially obtains PFP NFT, it means the advancement of their identity, from a brand consumer formally becoming a brand participant who recognizes the brand and realizes the identity. Brand participation means gaining more rights in brand development. This time, the identity and power attributes of PFP will be officially activated, and users’ consumption points will be converted into general SBT, and brand participants will be invited into the community, and corresponding rights and interests incentives will be released. Task.

In the brand activities that PFP holders participate in, the NFTs and SBTs obtained are limited to the activities of PFP holders, while PFP holders continue to complete the consumption of branded goods, and can continue to accumulate and enjoy. Compared with brand consumers, Better NFT PASS equity incentives.

As brand consumers complete the role transformation of brand participants, it means that brand participants come from identity, and gradually complete the brand’s identity construction by participating in the brand’s activity tasks. For example, PFP has different types of attributes, then brand participants NFTs and SBTs that need to participate in different activities to obtain this attribute, PFP, as an NFT of a composable identity protocol, realizes the growth function of the identity role.

In fact, PFP based on composable NFT protocol realizes PFP as a role growth mechanism by attribute NFTs and SBT. Sub-NFTs based on PFP assign different attribute labels to roles. The numerical value obtains the corresponding role weight. According to the brand’s plan, corresponding rewards and governance rights can be obtained. The sub-NFTs of PFP are used as different attribute tags, which is actually a way of using Loot NFT.

Through the above steps, we have completed the identity transformation of how a brand consumer becomes a brand participant, which involves several different types of NFTs, such as PASS, POAP, PFP, and Loot, etc. Finally, the use of DID and SBT, Basically, it has the basic conditions to transform brand participants into brand co-creators. Most importantly, it has created a real market-scale demand scenario for the application of DAO, and also created a consensus system based on DAO’s cultural symbols. The foundation has been established;

Brand’s Cultural Symbol Tool

We need such a tool that allows brands to create a series of visual and interactive media around an IP, and build an imaginary community through cultural symbols. This tool can help user groups to spontaneously create and spread culture. Interpretation tools of media, in the process of interaction, realize the re-creation of social network communication and cultural meaning.

Based on how this tool obtains the right to govern cultural construction and the right to return economic benefits, it also requires the cooperation of three key modules, namely the PFP identity agreement system, the cultural common knowledge base, and the distribution mechanism of property rights agreement.

The way to create culture is to obtain an opportunity for cultural creation by purchasing goods, because this is essentially equivalent to the casting of cultural consensus. We have upgraded the action of commodity purchase, combined with Mint’s action of casting NFT, to “cultural consensus casting”, that is to say, every purchase will strengthen consumers’ identification with the collective culture.

Consumption through mint can obtain a medium of cultural symbols (such as fragment cards, etc.), and this medium can be given specific attributes. Secondly, the symbolic medium obtained through mint can be used to shape personal identity, and can also be used for the secondary creation of culture.

The Possibility of Realizing Cultural Symbol Construction Based on Web3

We need to use the semiotic system of culture to shape abstract consensus into concrete and interactive symbols. All people can realize the perception of consensus value through this symbol system, instead of revolving around an imaginary consensus narrative. Yes, we need to implement the abstract consensus into concrete interactive symbols. The puzzle of abstraction to concreteness is difficult. We need to use the logic of analytic philosophy, from the cultural construction of history and society, to the Web3 paradigm and all Technological memes involved, enabling cultural systems of perceived interaction.

From the perspective of interpretive sociology and cultural anthropology, culture is a set of semiotic systems, and this semiotic system has dual characteristics. It is a “model that reflects reality” and a “model that builds reality”. It can reflect reality through symbolic symbols, but it is also a method to guide our real activities.

Behavior can be a symbol, an object can also be a symbol, and human language is also a symbol, and the most typical cultural symbol is totem. Not every symbol can be a symbol of a cultural system, but a symbol with symbolic meaning can be used as a symbol of a cultural system, and the meaning of this symbol is a kind of knowledge that is commonly recognized by the group, which can be both representative and Can be metaphorical.

For example, traffic lights are used as a tool to assist urban traffic management. The red symbol and the green symbol constitute the two symbolic meanings of passage and prohibition. Red and green are drawn from color psychology, using human perception of red and green. The natural preferences and dislikes of these two colors, and secondly, the guiding graphics of traffic lights are abstract expressions of behavioral activities from real actions, and the role played by the traffic arteries where the traffic lights are located further forms constraints on our actual behaviors. with supervision.

When we jump out of the situation where the traffic light occurs, the behavior of running a red light further violates the safety regulations of the society will be subject to specific punishment, and the violation of social moral constraints will be condemned by the social group. Finally, when the traffic light is used as a symbolic system of semiotics, it not only strengthens the collective consensus and behavior, but as a symbolic system with symbolic meaning, the traffic light will realize the migration and integration of cultural symbols. For example, in non-urban traffic scenarios, we see traffic lights as an abstract symbol and applied in other fields to play a similar role.

The “consensus” that we often discuss in Crypto and Web3 is a typical, a cultural concept with symbolic meaning. The maintenance of common values ​​is formed according to the collective “consensus”. As an important cultural concept, “consensus” is also the core mechanism of blockchain technology. The value of distributed ledgers is to provide a set of ledgers that everyone maintains and recognizes. The basis for maintaining the ledger and getting everyone’s approval is the consensus algorithm of the ledger.

The NFTs of the Loot paradigm, as the embodiment of the cultural semiotic system, connect the semiotic structure of the text field with the cultural structure of the empirical world. This means that the narrative structure of cultural symbols is an agreement with the symbolic characteristics of executing instructions on the smart contract through the text field , so that the cultural consensus can be reliably executed in the native world.

From this, we can draw a preliminary conclusion that it is initially feasible to realize the construction of cultural symbol system through Web3, then we will reflect it from the theory-business design.

Brand co-creation

How Brand Participants Become Brand Co-Creators

I believe that a good brand narrative constitutes the user’s lifestyle, and a good brand nourishes everyone’s life soul in a culturally infiltrated way. Culture is presented in the form of symbols, symbols are expressed in the form of narratives, and narratives are transmitted through the medium of commodities. Culture-symbols-narratives-commodities-media together forge a collective cultural consensus, bringing users a perceptible and interactive life concept , to realize that brand products not only provide functional value, but also provide the sustenance of emotional appeal.

Culture comes from life, but it must go beyond life. Cultural symbols must first become the common mental symbols of brand participants. Then, brand symbols must be integrated into the life and work of brand participants. We need to find the underlying logic of cultural consensus.

First of all, the NFTs and consensus protocols of the Loot paradigm realize the digital integration of symbols and meanings, because the essence of the blockchain is a set of distributed data ledgers, and when the data is presented in a semiotic logic, the data ledger becomes a symbolic logic. Ledger, the structural duality of the symbol itself, namely “mapping reality” and “constructing reality”, makes the symbol open up the network of meanings of reality and abstraction, and can be presented in the form of a symbol ledger. Yes, we have ushered in the brand A moment of revolutionary subversion for culture.

The brand’s planning for the visual presentation of the brand is no longer just the embodiment of aesthetics and stories for the NFT art design, but a set of material maps that express cultural symbols from the brand culture itself. The brand edits the NFT material. In the way of the device, open the symbol materials related to brand culture, including Logo, slogan, special symbols and even pictures with special meanings, etc. The set of symbol maps planned by the brand, as the initial symbol ledger, is provided to brand participants through the use of NFT The material editor, realizes the basic materials required for the secondary creation of symbols.

The material library of cultural symbols and the NFT material editor provide brand participants with the ability to create cultural symbols. Through this editor, brand participants can combine symbol materials with their own daily life and work scenes to express and cast cultural symbols. Become a new NFT, this NFT is a combination of scene and symbol, and the symbol gives the scene a meaning to express cultural attitude. The cultural symbols of the brand bring meaning beyond the picture to the scenes of life and work, and endow the daily life of brand users with spiritual sustenance and emotional links.

The characteristics of sustainable development and re-creation of culture come from the duality of the structure of symbols. The process of giving meaning to symbols is derived from the relationship between symbols and real scenes, and the projection of the spiritual world to the real world is often through symbols as a medium. To achieve expression and transmission, symbols are the glue or melting pot of concrete reality and abstract ideas.

Cultural symbols continue to merge with the real world, and I think this process is mainly carried out in four ways: 1, the symbolic totem; 2, the metaphorical association of the symbol; 3, the emotional bond of the symbol; 4, the symbolic The model of ritual manifestation; cultural re-creation can draw on the development logic of these four methods and apply it to the design of the business logic of brand symbol re-creation.

How Cultural Symbols Evolve

All pictographs or totems are representations of symbols, such as the totem of rivers and the word “chuan”, which are abstracted from real things as symbols, and the representations of things and symbols have an intuitive similarity. Primitive society revered the gods of nature and completed the construction of relational meaning in the form of totems. Secondly, there is also a metaphor of the symbol behind the representation of the symbol. For example, a tribe that depends on the river for survival, and the river supports the farming tribe, then the “Mother River” becomes the metaphor of the river totem, the fusion of the two symbols of the river and women. , has become an exclusive cultural metaphor representing the “Mother River”. The Mother River nurtures the people of the farming tribe, and the daily activities of the farming tribe and the Mother River are integrated into the collective memory of the tribal people, and the Mother River has become an indispensable abstract role for the tribe’s “big family”.

As an abstract role, the Mother River is an abstract role that nominally shelters the tribe. The Mother River and the tribe gradually establish common emotions, and will gradually carry the sustenance of the tribe and the role of prayer and blessing. Such as the joy of the birth of a new born, the sadness of the passing of the elderly. The newborn baby should bathe in a ladle of water in the mother river within the moment when the sun rises, bless the newborn with the blessing of the mother river, and pray for the newborn to grow up healthily; the deceased people of the tribe should be placed on a canoe and filled with materials. The fire is lit, then pushed into the river from the upper reaches of the river, and as they swim past the gathering place of the tribe by the river, the tribe people light the torches to bid farewell to the people who have passed away, and flow to the far side of the river…

These are the four characteristics of symbolic narrative: symbolic representation, symbolic metaphor, symbolic emotion, symbolic ritual. With the development of tribal culture, the symbolic totem of the mother river will also be further expanded, from the symbolic symbol of the river to the abstract symbol of the mother river, realizing the symbolic metaphor of the personification of things, and the collective memory and emotional reverberation of those tribes make the The symbol of the mother river realizes the emotional posture of “joy, anger, sadness and joy”, and with the ritual movements of the symbol, it will gradually expand into a set of behavior-guided symbolic movements, such as the burning canoe, the lit torch, and the loneliness in the distance of the river. Symbols such as boats constitute the symbolic ceremony of the Mother River and funerals, while the sun at dawn, a scoop of water in the river, and the baby in the arms constitute the symbolic rituals of the Mother River and the baptism of the new born.

If we express the cultural evolution process of farming tribes and rivers from a horizontal scroll, then from left to right in the scroll, we can see the development of the initial river totem step by step to the symbolic ritual narrative of the mother river. The historical evolution process of cultural symbols can be seen on the picture scroll, and this process is historically defined as the synchronicity of history, and the symbolic ledger based on blockchain technology also reflects the synchronicity of a culture. . It is the synchronicity of cultural history that shapes our current overall perception of culture.

Coincidentally, the data structure of the blockchain itself is a historical synchronic structure. Data and timestamps are coupled in a block structure, and are connected in series with transaction records, as mentioned above. When the block data is presented in the form of symbolic logic, it is a symbolic ledger with synchronic characteristics. The blockchain presents the historical synchronicity of culture with the logic of symbolic narrative, and the synchronicity of culture shapes the The basic evolution of human social civilization.

The creation of cultural symbols by brand co-creators

Therefore, the use of NFT material editors by brand participants should also conform to the four evolutionary logics of symbols and narratives, and ultimately form a synchronic structure of cultural symbols.

For brand participants, through the NFT material editor, select those symbols that express emotional connections, combine photos or scenes of their own lives, and use the brand’s cultural symbols to express their life attitudes and emotional appeals. Sharing life and work is what we are This time, the symbol gives us an emotional consensus on cultural significance. Each brand participant, including the brand owner, jointly maintains everyone’s emotional ledger, and the brand participant realizes the identity transition of the brand co-creator. . Because the emotional ledger jointly created by the brand side and all brand users is the most valuable asset of the brand culture.

As brand co-creators create more brand cultural content, and then gradually form the life story materials of brand culture, these life stories rendered by cultural symbols can arouse collective emotional resonance and identity, which are cultural symbols. The emergence of emotions related to life scenes makes the symbolic scenes a collective memory, and the connection between specific scenes and symbols forms a new symbolic metaphor. For example, the broken cup and the symbol of love, then the broken cup can be abstracted into the symbol of the symbol, forming a new broken cup symbol, and this symbol can be applied in the life scene expressing heartbreak. If a symbol lacks the collective common memory, then the symbol does not have the collectively perceivable symbolic meaning, and it loses the value of cultural communication.

As a consumer commodity, the brand constitutes a part of our way of life, and when the brand acts as the materialized medium of symbols, the lifestyle constructed by the brand will also become a symbolic ritual action. The description of the symbol and the guidance of a series of interactive actions constitute the ritual action of the symbol. These symbolic ritual actions can be either the actions of individuals to objects, or between people, and even more can be the interactions between people and abstract things. The ritualized action of symbols represents the basic presentation of the cultural reproduction structure.

Because the ritualized action of symbols is a special action that cultural symbols guide us to reconstruct the real society, as a way of spiritual manifestation, the core of cultural symbols behind the action becomes part of the real world. Therefore, when designing the user’s interaction process, brands need to combine specific symbolic actions, and the user group will also produce more symbolic ritual actions in a large number of daily cultural activities.

The dissemination of culture must depend on the dissemination of social media. For example, the interactive form of content such as likes, reposts, and comments on feed information blocks is a natural collective identity and emotional resonance, which is spontaneously generated by social networks. Cultural phenomenon is more in line with the collective emotional construction of Internet users, rather than the way of voting on everything in Web3, because culture comes from life, not institutional decision-making. Those cultural imaginations that resonate will be further symbolized and further invested in social media networks for dissemination. For the brand side, it is to seize these new brand symbols and cultural scenes emerging from collective emotions, and further plan them as brand advertisements and put them into more market channels.

The best creative for a brand must come from the brand’s customers.

DAO governance

How Brand Culture Shapes True Identity

The most difficult thing in a person’s life is to recognize ourselves. We can’t use ourselves as an objective subject to prove who we are? The shaping of human self-cognition is determined by the orientation of the external environment. In the symbolic environment of culture, symbols are the direction of self-shaping, and cultural environment and cultural symbols constitute the image characteristics of the self. In the symbolic environment of brand culture, symbolization plays an important role in the identity of brand co-creators. play a key role in.

Symbols give a character an identity attribute, which is an obvious way, such as the design of a growing game character, identity is not just a common symbolic label, but a combination of inner personality and cultural environment. Emotional memory, cultural emotional memory is the consensus of collective emotion, and the inner personality of identity is the projection of collective emotional consensus, which is the core of the real identity establishment. The so-called identity of PFP NFT is only a sign of common holding of PFP as an identity. In fact, these are superficial efforts, lacking the deep relationship between the collective cultural core and social groups.

Therefore, the identification of brand culture formed by brand participants and brand co-creators is the mutual orientation of emotional ledger and individual personality. The emotional ledger is the collective emotional consensus and common memory, which shapes the manifestation of the individual’s personality characteristics, that is, the symbolic character label. The collective emotional resonance, therefore, true identity is inseparable from two conditions, one is the collective emotional ledger, the other is the individual’s personality symbolization, and the two influence each other and build each other.

The future design path of PFP NFT needs to be linked to the collective emotional ledger through the identity protocol, whether it is the overall identity protocol of PFP or the protocol of identity attributes, because the protocol is the consensus method for building the relationship on the collective chain.

In fact, the insight of this thought can be realized through the Web3 paradigm, and I think this is the real subversive revolution of Web3 on the relationship between brands and consumers, not just the commonly mentioned brand and consumers become the economy. Community of interests.

Brand Community Economy and DAO Governance Structure

In the era of serious homogenization of commodities, except for a few manufacturers who have mastered the top production technology and independent research and development capabilities, most of the branded products do not have competitive barriers, that is, the functional value of the products is not very different. , consumers are easy to choose different products with the change of the trend and the change of the environment. The common economic interests established by brands and consumers in this set of value logic are extremely fragile. After all, serious homogeneity means high substitutability. This has also caused many brands to sell more goods rather than really do brand culture. Therefore, the brand side needs to establish a unique and difficult to replace common economic interest relationship with the brand co-creator.

Brand co-creators build a value chain of brand culture while expanding the consensus on brand culture. In an ideal Web3 network environment, all communication chains are traceable and tamper-proof, which means that the interests of brand co-creators can be guaranteed to the greatest extent. This means that the communication process of the cultural symbols and cultural scenes created by the brand co-creator can become a kind of brand curation advertisement. Since the visual presentation of the communication carrier is NFT, this curation mode will also appear. Business models such as exhibition investment and curatorial dividends.

When a brand cultural scene with the potential of breaking the circle is created, both the brand owner and the brand participants, the co-creator can invest in the curated NFT to obtain the future collection value of the curated NFT, or Profit sharing from sales conversion. Brand co-creators have an economic construction method to obtain network effects. This model with probability of obtaining exponential benefits will further promote the enthusiasm of brand co-creators for brand economic construction.

When the communication chain of cultural symbols establishes the interest relationship of the collective economy, the long-term sustainable development relationship between the brand and the co-creator is truly completed, because the economic foundation determines the superstructure, and a cultural community without economic support cannot develop in the long term. . The economic interest relationship established based on cultural symbols is also the economic basis for collective consensus. The economic interests of brand co-creators are guaranteed by cultural consensus. Cultural consensus is the result of collective creation, not owned by one brand. The brand side can retain the interests of its own business entities, but cannot encroach on the economic interests of the brand co-creator. The brand side needs to give the brand co-creator appropriate cultural and economic governance power at this level of economic interests, but does not involve The decision-making power of brand business entities.

The prosperity and creation of cultural symbols is the contribution of the collective, not the credit of the brand side alone, and the economic benefits brought by cultural symbols are naturally the interests of the collective, not the brand side alone. The emotional ledger of cultural symbols is a collective asset, and economic interests are only the realization of the value of the asset. Therefore, the brand creator and the brand have formed a cultural property rights community. In the Web3 era of the rise of individual sovereignty, it is impossible for the brand to unilaterally sell stories. Build brand culture.

When we start to discuss how the property rights relationship between the brand co-creator and the brand owner can be confirmed and operated, it means that the governance structure of DAO appears. The most difficult part of DAO is governance, and what determines the governance mechanism is the joint effect of culture and economy, that is, the trade-off of economic interests and the consensus of collective culture.

I have always believed that if an organization wants to achieve healthy and sustainable development, culture, governance, and economy are an indispensable trinity, and most DAOs in Web3 only emphasize the superiority of governance based on the chain, while ignoring the economic foundation and the Cultural construction, or in other words, most practitioners still lack profound sociological cognition and lack of understanding of the vast and complex disciplinary system and historical empirical meaning behind the abstract vocabulary of culture.

The DAO governance structure based on brand co-creators and brand owners should be an hourglass-shaped governance structure with cultural consensus at the top, governance power in the middle, and economic rights and interests at the bottom. For the brand side, the brand is the most valuable asset at the core. We can see that some well-known brands can make profits only through trademark authorization, so the main ownership of the brand is still firmly in the early stage of this brand revolution. In the hands of the brand. That is to say, the ownership of governance capabilities is owned by the brand, not jointly owned by the brand co-creators. The brand co-creators enjoy part of the governance capabilities including the right to benefit, the right to use, the right to lease, and the right to invest.

After the brand party has determined the basic guarantee of ownership, it can boldly hand it over to the brand co-creator at the level of cultural consensus. The value of DAO is to ensure that culture becomes a common asset. The culture here includes not only cultural symbols, but also brand co-creation. Those cultural scene NFTs created by creators are the public assets of DAO.

The economic rights and interests of brand co-creators are closely related to the contribution of cultural creation. As mentioned above, the cultural transmission chain is also the value production chain, and outstanding cultural contributors can get exponential returns. The creation and dissemination of brand culture is the purpose of equity incentives, and the collective participates in the governance and dividends of DAO in the form of cultural dissemination and curation through a non-voting consensus method.

After realizing this basic structure, the degree of openness of governance power can be chosen by the brand itself. After all, with the increase of cultural influence and economic weight of brand co-creators, if the governance power is not gradually released, it will lead to the division of cultural consensus. Fork , the brand co-creator is nothing more than finding another commodity medium for emotional sustenance and symbolic attachment.

The above-discussed scenario is a trade-off between the interests of traditional brands in Web3 transformation. For the construction of Web3 native brands, an hourglass-shaped governance structure is still needed in the early stage, and then the governance ownership of the brand is opened up according to the development stage.

In a nutshell, we first build a collective ledger through cultural creation, and obtain corresponding economic rights and interests based on the ledger data. As the complexity of the business increases, organizational management and operations need to be involved, and then the power of common governance is opened accordingly. Of course, the specific governance structure still needs to be analyzed on a case-by-case basis, and there is no panacea for DAO governance.

Development Strategy

Industry Development Strategies of Web3 Brands

If we compare it from a popular explanation, today’s Web3+ brand is like the attack of e-commerce on traditional entities in the past. This does not mean that traditional brands will disappear, but will become a new brand industry model. Today’s e-commerce has seized more than a dozen How much market share of traditional retail a year ago. Web3+ brands will seize the market share of traditional brands or even exceed them. Thanks to the network infrastructure built by the developed Internet, the cycle of this brand revolution of the Web3+ brand will not be as long as 10 years, and it may be just a few years to complete the shaping of the market structure.

In this revolutionary subversion of traditional brands by Web3, how should we seize the opportunity, and how will we fight this comprehensive and integrated market battle of “technology, culture, products”, etc. Here I have some Possibly immature ideas and strategies.

If this market competition is regarded as a Web3 battle, then at the current stage, we must directly hit the pain point of the brand and implement dimensionality reduction. How to build a Web3-based native brand to form a crushing advantage over traditional brands is the key first step. Therefore, we need a weapon, and this weapon is the system for building a consensus on cultural symbols as mentioned above. tool.

Secondly, through strategic inducement through marketing tools, the native brands of early Web3 must be like guerrillas, so we can make quick money through high-frequency guerrilla attacks to weaken the liquidity of the traditional brand market and weaken its liquidity. The economic foundation of the brand, to seize the minds of the brand-swinging users.

In this step, we can incubate more Web3 native brand projects through the Web3 brand incubator and training camp. We need some cases that are effective enough to solve small money, so that anyone who wants to start a business and become a brand will give priority to the Web3 model. Through this method, Cut off new talents from traditional brands;

At this stage, the brand market is mainly aimed at young people, because young people have the right to speak in public opinion on Internet culture, and young people also represent the main force of consumption in the future. And through this strategy, we have further controlled the thinking of building a brand in the future, and realized the intervention at the ideological level.

The most difficult thing for Web3 native brands is the integration of the product supply chain. In fact, most of the products are OEM products, and the supply chain is most worried about the problem of inventory and slow sales. Because the Web3 brand has a strong consensus, it means that The pre-sale system can alleviate the greater financial pressure. The most important thing is that the biggest advantage of Web3 lies in the traceability of the industry chain, so that the production certificate of the supply chain can be presented to the consumer market. This is what the blockchain has been shouting for for many years.

Through the advantages of this step, we can achieve early access to a large number of strategic tools and get involved in the complete ecological supply chain of the brand, and Web3 brand entrepreneurs need to use this to build a complete business scenario of on-chain data and realize on-chain supply. The closed loop of the chain scene. Of course, not all supply chains are suitable, we only find those that are.

The industrial upgrading of the supply chain is the development demand of every country. Therefore, it is necessary to pay attention to Web3 as a high-tech enterprise to realize the upgrading of the traditional supply chain and manufacturing industry, and obtain support from the policy level. The supply chain popularizes the data value of production business. Only when the supply chain realizes the value of data can it fully turn to digitalization and the Web3 paradigm.

In addition to talents on the market side, we must also pay attention to labor talents in the supply chain and manufacturing industry, and gradually transform into digital talents with Web3, especially craftsmen with special professions, etc. When we realize the closed-loop construction of talent expression, Only then can we launch large-scale reforms and launch a positive confrontation with traditional big brands that stick to their interests.

The trend of the times is unstoppable, WAGMI!

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/4d-details-on-how-web3-and-brands-are-driving-the-next-bull-market/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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