web3 with a16z crypto cover image

Network Effects, Moats, & the Business of web3

web3 with a16z crypto

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The Future of Subsidization in Web3

The big change here in Web3 is you have many new ways to subsidize. If you give your initial developers or liquidity providers a bunch of tokens, then not only does this drive them to participate right now, but it actually gives them much more of a reason to stay on the platform and keep participating in the future. The value of those tokens goes up if they provide liquidity or develop software or features that attract a lot of users.

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