Crypto as a community building mechanism
One of the hidden truths of Crypto is that its most powerful weapon is not decentralization, but the ability to build a tight-knit community from scratch, bottom-up. The meaning of “community” here does not mean that a group is established on a communication tool to become a community, and even a community does not need this form. Admit it, and the fastest way for people to “consensus” is to let them skin in the game.
To put it simply, Skin in the game is to make people’s interests relevant, and there must be real investment. If there is a failure, there will be pain in the skin, and then people will really care and participate. To put it bluntly, the ability of Crypto to build such a strong community comes from the price. Take Bitcoin as an example. Bitcoin is the most extreme example of “community-driven”. Satoshi Nakamoto just did “enlightenment” and put forward a prototype, and even went directly to the world to become invisible. But Bitcoin, as an ownerless system, finally survived, relying on the continuous persistence and preaching of the Bitcoin community, because these people not only agree with the values that Bitcoin represents, but also because they skin in the game, real money was put into it. I don’t mean to say that they only preach because they are afraid of losing money because they have invested real money. On the contrary, I believe that money will not tarnish the sincerity of this belief, but will strengthen and invest real money. and sincere faith are mutually reinforcing.
I believe that many people have the same experience. If you have a prejudice against something, then buy a small amount of it, and you will find that your prejudice magically disappears. Money is the poison of the human brain, and it will make you unknowingly Change. You will find that your judgment is not so objective, just because you did not share it before.
NFTs are complementary to Crypto community building
We turn our perspective to our popular protagonist NFT. I believe the same forces that propel NFTs to the mainstream are the same forces that push Bitcoin to the mainstream – a community of stakeholders and a drive for reflexivity. The first point we have discussed above, because buying NFT, skin in the game, has the motivation to participate in the promotion. The second point, the fundamentals of NFTs are people’s desire to own this NFT. The impact of price on people’s judgment is real and hard. The same picture is too lazy to right-click to copy when it’s cheap, and watch it when you can’t afford it. Much more pleasing to the eye. The higher the price, the more people want to own, and the more people want to own, the higher the price. Several recent so-called “blue chips”, starting with Azuki, including moonbrids, are clearly aware of this, and the initial high price is an advantage.
Compared to its homogenized predecessors, NFTs are a further complement to community building tools. The most interesting point of NFT is that it introduces a more emotional component and introduces cultural attributes. Humans are emotional animals, and images can mobilize people’s emotions better than numbers and are easier to understand. It is easy for people to like cool monkeys, but it is unlikely to like cold numbers and ethereal values, so it is easier to get out of the circle. Furthermore, from the perspective of liquidity, NFT is easy to enter but difficult to exit due to non-homogenization. For the above two reasons, NFT has a lower cognitive threshold and higher user stickiness, which means a stronger community.
Let’s analyze Defi from the same perspective of community construction. The problem with Defi is that the participants it attracts are profit maximists, and Defi users consider rational profits. Defi is a tool in the final analysis, and it is difficult for a tool to gain believers, so it is difficult to have a belief premium. Although in Defi summer, YFI once formed a kind of cult atmosphere, but this “religion” is more built around AC himself. When AC quits, the divinity cools down, and YFI becomes a simple A tool for aggregating income. In my opinion, if Defi wants to be revived in terms of price, it cannot rely on pure expectations. It must consider the issue of carefully designing value capture. The product has a market without a value capture mechanism, and it is still not worth investing in. Of course, that is another The problem is beyond the discussion of this article. And NFT users – of course there are still a lot of flippers – in addition to the pursuit of profit, NFT users pursue identity, a sense of belonging and social capital, which means more consumption components, which means that we can build more strong economy.
NFTs as a social collaboration layer
In my opinion, the core of Defi is not finance. Defi shows us a new way of social collaboration with finance as an experimental field – it can open source, reuse existing protocols without permission, and build new applications and Organization, creating a huge system from the bottom up.
Defi shows us the potential of this bottom-up, permissionless, composable collaboration approach, and I believe NFTs will be a better base layer for this collaboration approach. The interconnected system we created from the bottom up is actually a new economy. Defi’s system is closer to a PVP zero-sum battlefield, and this new economy based on NFT is composed of more consumption because it is also more stable.
Loot is a very pure attempt in this direction, an interesting experiment in building fun with composability, and even today I still think it’s the most amazing idea in the NFT space. Loot itself has some problems, but its bigger significance is to show us a new possibility.
Developers can freely build using the base Lego provided by Loot, and their creations can become new bases. Loot here actually provides a common basis for mutual collaboration, a social collaboration protocol. From this, we can build a new PFP, build a new gameplay, even build a currency, create an endogenous financial system based on NFT, and finally we can build a digital country based on common imagination.
Of course, I don’t know if Loot can reach that height. It is an imperfect experimental work in itself, but, again, its greater significance is to show us this possibility, to set up a coordinate for us, always There is a successor on this road that can come to the end.
Several methodologies for constructing the NFT social collaboration layer
Community equals everything
Belonging and attention are the oil of the new era. I have spent a lot of time talking about the importance of “community”. Crypto has always been a fringe revolution. Community is the key to driving Crypto from micro to mainstream, whether it is Bitcoin Still PFP, creating a hard core is a prerequisite for expansion and growth.
Contrary to what most people know, Loot is a negative example of a community building failure. Premature hype damages subsequent development. A strong community should be the core supporters who truly believe in the project’s vision in the early stage and develop together with the project to achieve a After the zero point, it enters the hype stage, welcomes speculators and then core supporters gain wealth because of their vision and companionship. Faith and wealth income strengthen each other, and these people become the believers and mainstays of the project. They believe in the project and have the ability to support the project. This group of core supporters is the key to the success of a project. However, Loot entered a large number of speculators prematurely, overdrafting the appreciation potential of the project. Speculators came and went in a hurry, which did not help the project much.
Rewarding core supporters is very important, and Ape does this very well. For example, the gameplay of airdrops, although everyone is familiar with it now, it is a very smart way to think about it carefully. Wanting to introduce more participants cannot be at the expense of harming the existing community (such as direct additional issuance). The demonstration effect of the wealth effect is the fundamental driving force for new players to enter the market, which damages the original community. Without the demonstration effect of the wealth effect, the old players lose and new players have no motivation to enter the market. The release of the secondary series and the airdrop to the holders of the core series not only rewarded the old players and strengthened the consensus, but also introduced more participants, and the primary and secondary series were clearly defined, and the secondary series did not dominate.
Build the community first and then build the gameplay, bottom-up
Now it can be observed that there are roughly two development paths. One is traditional, which builds complete products from top to bottom. Axie and most products classified as Gamefi generally adopt this path; Loot, Ape, TreasureDAO, and other NFT collections that want to develop ecologically, showing a new development path, from bottom to top.
The bottom-up world construction is not actually an original creation of Crypto. D&D Dungeons and Dragons is a very obvious example. D&D’s far-reaching and lasting influence is inseparable from its bottom-up, decentralized development method. Loot is actually a derivative of Dungeons and Dragons in a broad sense. Dungeons and Dragons is a tabletop role-playing game, which consists of a series of background settings and gameplay rules. Players role-play under the constraints of the background and rules, “playing the house”.
D&D rules and world settings have infinite scalability, attracting countless excellent three-party creators, and based on D&D, they have created many excellent derivative works, including board games, novels, video games and other types. For example, works such as the tabletop games “Grey Eagle World”, “Dragon Gun”, “The Cataclysm”, “The Forgotten Kingdom”, etc. Among them, “The Forgotten Kingdom” has further derived the fantasy literature “Dark Elf Trilogy” and “The Forgotten Kingdom”. Icewind Dale Trilogy, etc.
There are countless derivatives created based on the D&D worldview, which has profoundly affected the development of later video games and fantasy literature, especially RPG games. D&D has established the RPG model almost from the worldview to the gameplay. It can be said that D&D is the originator of RPG games. Later RPG games like “Baldur’s Gate” and “World of Warcraft” are basically like electronic replicas of D&D. Maybe there would be RPG games without D&D, but RPG games without D&D would definitely be a completely different look.
The most interesting point is that D&D’s development model is bottom-up, relying on excellent three-party creators to develop such a huge cross-category derivative. His lasting and far-reaching influence and decentralized development secrets. Inseparable, it is difficult to imagine that this series will develop so prosperously if it depends on the original author alone.
Going back to Crypto, let’s take Ape as an example. Ape’s blueprint is built with building blocks. First, the most basic element, PFP, starts to form a community and culture, and then uses PFP and the already formed community as the basis for tokenization, and then uses it. PFP, community, and exclusive token are the basic elements to build social and gameplay.
Ape did it successfully, but didn’t take advantage of the real advantages of bottom-up development. The real advantage of the bottom-up approach is that it can build an open system that enables three-party developers to stitch together new products using existing basic LEGOs and become a collaborative base layer. Making decentralized world building possible, this is where web3 is truly imaginative, not a company making a product.
As we discussed above, composability is the key to what makes Defi Defi, and it is the foundation of this new type of collaboration. We should try to keep the characteristics of composability as much as possible. We need to make a trade-off between composability and experience when necessary. Maybe it does not need to be as high as Defi. It needs to be explored in practice.
The word composability is a bit cloudy and foggy, making people unable to grasp the point, but in fact it is not so mysterious. Composability is to open up data and code, and the purpose is to allow other developers to reuse it freely without having to Repeatedly building the wheel reduces the development friction to the greatest extent. This degree of freedom in development is beyond the reach of any traditional SDK. It is the basis for NFT collction to become a protocol-level innovation.
Finding some kind of balance in the decentralized spectrum
One lesson learned from Loot is that complete stocking is unrealistic. In order to attract people, “entertainment” must rely on continuous content creation, and new content must continue to appear. It is difficult to be like BTC and Defi protocols. It can continue to operate, so especially in the early stage of the project, the project party must have planned development content to motivate and guide developers. It is difficult for developers to generate electricity with love alone. It is difficult to get through the initial startup stage.
We need to find a certain balance in the decentralization spectrum. We can learn from the governance structure of the current mainstream Defi and the gradual decentralization led by the project party, which is also the direction that DAO is actively exploring. Decentralization of the base layer must be the ultimate goal, otherwise it will return to the relationship between web2 big companies and small developers around web2. The so-called web3 is meaningless and becomes empty talk.
tokenization is important
In addition to short-term speculation, a simple NFT collection does not actually need to issue coins. The introduction of a new token holder will conflict with the interests of the original NFT holder, disperse the consensus of the community, and sow the seeds of instability. The earliest conflict between Loot holder and AGLD holder has been staged again. But to build a complex system, tokenization is inevitable.
With the token, the release of the token and the treasury can be planned, as a means of incentives for developers; it can be used as the glue within the ecology to exchange three-party applications to integrate ecological tokens with developer incentives/support, so as to integrate the ecological The applications/games are glued together to form a whole.
Self-built NFT trading market
Guide some core NFTs in the ecosystem to the self-built NFT market, you can use the native tokens of your own ecology for pricing, and capture the handling fees while enabling the monetization of the native tokens of the ecology. For example, TreasureDAO chose a new chain Arbitrum, this There was no strong NFT market on the chain before. They chose to build their own NFT market and denominated it in native tokens. Now it has become the largest NFT trading market on Arbitrunm.
The hard work of players is the source of maintaining the vitality and retention of the community
Another reason for the bottom-up construction method is that users can participate in the construction of the world. Compared with the stop loss of money, it is more difficult for players to give up their hard work. An example is that Forgotten Runes Wizards created a Book of lore for the holder, and the holder can write the lore for his wizard and display it on the official website.
In fact, there are still many issues that need to be discussed, such as the issue of bottom-level scalability. The above-mentioned model is absolutely unsustainable on Layer 1. How to choose an expansion plan and whether to build your own chain. For example, the NFT collaboration layer does not have to build games. We can even build a financial system based on NFTs… Due to space reasons, I decided to stop there.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/how-does-the-new-social-collaboration-layer-build-stronger-communities-with-nfts/
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