Learn about network bonding theory and how to build network effects startups. Topics discussed include turning companies into networks, compensating nodes with non-fungible tokens, network-on-network competition, and examples of network bonding and attacks.
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insights INSIGHT
Network Bonding Theory
Network bonding theory explains how networks form, focusing on bonding nodes.
Web3 allows us to see network construction explicitly, enabling better startup building.
volunteer_activism ADVICE
Multiplayer Mindset
Shift from a single-player to a multiplayer mindset when building your startup.
Consider your company as a multiplayer game and analyze node interactions and compensations.
volunteer_activism ADVICE
Company as a Network
Treat your company as a network and explicitly calculate node value contributions.
Consider how much equity or compensation to offer each node based on their value.
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In this episode, James Currier delves into 'Network Bonding Theory'. He elucidates how to make implicit network calculations explicit, discusses declining equity distribution in startups, and the future of calculating node value. He explores the role of fungible tokens in enhancing network nodes and the shift to tokens and NFTs. Lastly, he discusses the vulnerability of networks and the importance of understanding and measuring nodes for company development.
Realize that your startup itself is a network. Your goal is to bond people to it. When you attach, or bond, one node to your network, it adds value to all the other nodes.
This is episode 5, from the NFX Masterclass, covering Network Bonding Theory. Learn best practices for bonding nodes to your network led by NFX General Partner James Currier as he shows you a set of mechanisms that will help you build network effects startups even better.
This is an audio version of episode 5 from The Network Effects Masterclass, curated for audio and listening on the go. For the full video experience, transcripts, and recommended reading, join the free Network Effects Masterclass at - NFX.com/masterclass.
(0:00) Introduction to Episode 5: Network Bonding Theory
(2:07) Understanding and Making Implicit Network Calculations Explicit
(3:44) Declining Equity Distribution in Startups and Future of Calculating Node Value
(7:03) Compensating Nodes for Their Performance and Different Types of Compensation
(11:47) Lionel Messi's Compensation with Fan Tokens and the Inequality of Nodes
(14:41) Role of Fungible Tokens in Enhancing Network Nodes and the Shift to Tokens and NFTs
(16:39) Human Factors in Compensation Models and the Era of Network Wars
(19:14) Vulnerability of Networks: Fungible Nodes and Network Attacks
(21:02) Importance of Understanding and Measuring Nodes for Company Development
(21:44) Conclusion and Preview of Next Episode
The NFX Podcast