From MVP to MVD: The Evolutionary Road of Web3 Thinking

From Minimum Viable Product to Minimum Viable DAO

The concept of MVP was originally proposed by Eric Ries in “Lean Startup” (Lean Startup), which means to build a usable product prototype in the fastest and most concise way, and use this simplest prototype to test whether the product meets market expectations. , and revise the product through continuous rapid iteration, and finally adapt to the market demand.

Fast trial and error, fast iteration. By creating products to meet user needs, the needs are transformed into functions, and functions bring user growth.

Today, the community form started by DAO is changing the paradigm of this innovation flywheel. With the rise of the crypto boom in 2021, it is estimated that the DAO now has a total of around 1 million participants. According to ConsenSys data, the Top 20 DAOs collectively hold more than $14 billion in digital assets. Previously, we tended to say that without good ideas and ideas, there would be no users, and consumers would monetize data into new products. In the field of Web3, to a certain extent, without a community foundation, there is no project, and consumers have changed from “products” to multiple roles such as community members, investors, and stakeholders.

The power hierarchy becomes flatter, and Web3 facilitates a creator-driven economy while rewarding consumer participation, ushering in a new era of social networking. Next time, before starting to design an MVP, it is better to move from the value assumption of the product itself to the community-based consensus exchange thinking.

Value Hypothesis: Does the user think the product is useful and valuable to him, and will the user find the product “amazing” and “far superior to other products”?

Consensus Exchange: By proposing a valuable consensus, the initiator drives more people to gather and influence each other, exchange value and spread it independently. Do users agree with this value?

Just think, how can users become your benefit sharers and entrepreneurial partners, not just your consumers?

From MVP to MVD: The Evolutionary Road of Web3 Thinking

Image source: NFTGo.io

4M elements open MVD

To start a minimal DAO, just remember the key 4M elements: Mission, Member, Mechanism, Money.

First, you need to determine the vision or goal you want to accomplish. Second, consider what group of people you want to gather to accomplish it with you, and define the roles of members. The third is to consider how to set up management mechanisms, including voting, incentives, and decision-making. Mechanisms, etc. The fourth is to consider funds and a perfect token economic system, how to transfer value and transfer value, which can be NFT or tokens.

From Hypothetical Function to Consensus Cohesion

Where previously, one or two people proposed and defined product features, today, through bottom-up contributions, a group of people rolls out products in a way that aligns with the DAO’s motivations and values. The minimum feasible DAO puts the community first, and the consensus precedes the product. Whether it is to form a proposal, vote, define roles, or consume, a modular DAO can be created through smart contracts.

In the case of Apecoin DAO, one of its visions is to foster a community of creators and innovators. Before everything starts, sponsors and organizations need to plan a perfect protocol and rules, the starting point is how to increase the value of the tokens owned by each DAO member and feed back the entire DAO.

Another example is Bankless DAO. Many high-quality and knowledgeable in-depth articles and structures have allowed Bankless DAO to accumulate the first wave of consensus. For the yearning for a bankless society, DAO members continue to branch out and form new guilds.

From passive acceptance to autonomous voting

Generally, community members make proposals for future operations and then come together to vote on each proposal. The passed proposals then build community consensus, and users’ passive acceptance of all results from the past gives way to community collaboration under this framework. Additionally, each member of the DAO oversees the overall operation to some extent.

On the one hand, it is necessary to pay attention to the consistency of incentive measures when voting, to maximize the best interests of individuals and the interests of the organization. For example, ApeCoin holders can submit ideas and ideas in the form of posts, where moderators confirm their alignment with the interests of the community. An AIP idea can be collaborated by multiple people, and it can also receive comments from others. After that, moderators can post AIPs to Snapshot, and once live on Snapshot, Live AIPs will be open for voting. The voting options are “Yes” and “No,” with “Yes” meaning voters approve of the AIP being implemented exactly as-is.

From user testing to token governance

In the past, MVPs put a lot of emphasis on user testing and feedback, and the feedback given by users was used for the next development iteration. But today, when starting MVD, you need to think about how to convert user contributions into funding and incentives, as well as figuring out how to get funding and give it governance.

This is usually accomplished by token issuance or NFT issuance, both of which raise funds to replenish the DAO’s coffers. Token holders have various rights, such as voting rights, partial governance rights, etc. Additionally, some freelancers, industry advocates, and those interested in the project are able to get paid in additional tokens for participating in the governance of the DAO. Their role creates a unique value proposition where commitment and effort in the community can be tied directly to financial capital.

This is an important step in transforming members into participants and stakeholders. Members not only need to feel a sense of belonging and connection, but also be able to invest in things that interest them at the same time. The value of the token is related to immediate community value, such as member benefits and privileges, social capital and status, as well as long-term community influence, community profits, and token supply and demand. If it is issued in the form of NFT tokens, it will also be related to other factors such as rarity.

Looking at the token or NFT holders of most DAOs or communities now, they can often be divided into these categories, HODLer, Supporter, Advocates, Flipper, Innovator, and the different proportions of each category of members also represent the quality level of the DAO.

Of course, DAO also has its own bank account or treasury, just like an Internet community with shared bank accounts, which independently determines how to allocate community resources and economic rewards. For example, DoodlesBank, the community treasury of Doodles, is used to support activities carried out by various communities. The DAO is a web3 community in its purest sense in terms of decentralization, democratization, and economic participation, and a key tenet of the new economy of ownership.

In addition to this, staking can also facilitate the development of the token and NFT ecosystem, improving supply and demand, while incentivizing early adopters and existing ecosystem participants. And the linkage model such as the double pledge of NFT and tokens in ApeCoin DAO may be one of the common trends in the future.

From hypothesis testing to action

The DAO often calls on the community to come up with interesting ideas through funded projects, and individuals with entrepreneurial spirit are free to submit proposals. Different DAOs have different degrees of participation. For some DAOs, everyone gathers to achieve a common goal, such as the previous Constitutional DAO and Assange DAO, etc., and some are to promote the collection of personal funds, find more A good investment direction, such as SharkDAO. Furthermore, the project party gathers a group of people with common values ​​through PFP to realize the roadmap step by step.

Technology is just a means

Over time and network effects, social media has amassed billions of users. Large corporations profit handsomely from users’ attention, time, and wallets. Web 3 aims to break down these concepts, not just to allow early investors and teams to benefit from these network effects, in this day and age, all users who play a role in a project’s success should benefit. As a result, the user becomes a partial owner of the product.

The concept of decentralization and fairness paints us a bright vision for the future, but at the same time, we also need to note that Web3 and DAO cannot solve all problems, and many blockchain projects are based on the idea that technical concepts come first, that is, new technologies and new Concepts can solve most social problems under the current mechanism. But technology is only a means to an end, and only the transformation of thinking can be eternal. In the industry, our attention is constantly being deprived of new hotspots, constantly shrouded in new temptations, the swarming PFP craze, novel and even dazzling concepts and decentralized organizational operation systems will also undergo time considerations.

Free Expression and the Second Personal Revolution

The community comes first, then the product.

Under MVP, we assume that consumers have such needs. Under MVD, we don’t assume, we create and choose any requirements. Under MVP, a small number of people determine the size of the needs and evaluate the best ideas. Under MVD, the best ideas are executed, led by community votes. Under MVP, the community is your testing ground. Under MVD, the community is your investor. Under MVP, the community is your consumer. Under MVD, the community is your partner.

A project or product produced by a well-functioning DAO can produce a positive-sum result compared to an MVP in the Web2 era. The flow of funds for MVPs often flows from the community to the creation team, and this flow is often accompanied by losses. Under the operation of DAO, the community and the creation team continue to attract people from outside the community to join, and the flow of funds is from outside the community to the inside of the community, rather than from the majority to the minority within the community.

The transition from the original product-centric to the individual-based creation is also a reflection of the new characteristics of society – emphasis on participation and expression, emphasis on self and uniqueness, emphasis on entertainment and consumption. In an individualized society, classes become more ambiguous, and the self-emotional expression brought about by the second personal revolution becomes all that matters. If we really want to move towards democratization and liberalization, shifting the voice of large corporations to individuals, perhaps we need to reform our thinking. What is the motivation of everyone to do things, and what is the distribution of the final benefits.

MVD is an exercise in democratizing the monetary system and may become a new discourse in the future. From paid usage to shared benefits, whatever the ultimate purpose and scope of a DAO, its success depends on its true recognition of the power of the crowd and its ability to drive collective energy to produce results.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/from-mvp-to-mvd-the-evolutionary-road-of-web3-thinking/
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.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2022-03-28 09:26
Next 2022-03-28 09:27

Related articles