Discussion on Economic Models in the Early Stage of Web3 Applications

In the current Web3 field, most application projects' economic models initially display Ponzi characteristics. This phenomenon originates from the early stage of Web3 applications, where the infrastructure is not yet完善 and there is a lack of reliable product providers involved.

Looking back at the evolution of business models over the past few decades, we can see three main stages:

Phase One: Direct Relationship Between Product Providers and Users

Before the rise of the internet, product providers sold products directly to users, who paid for the basic functionalities of the products. The quality of the product determined the growth in the number of users.

Phase Two: Platform Intervention

With the development of the internet, platform providers have become intermediaries connecting product providers and users. They gather users through technological advantages, charge fees to product providers, and profit through advertisements and other means. Early platforms attracted users through subsidies, similar to early participants in Web3. Platform providers have gradually evolved, starting to enhance user experience through methods such as influencer marketing.

Stage Three: Decentralized System

In the Web3 era, the intermediary connection has shifted from centralized platforms to a system composed of decentralized protocols. This system embodies characteristics such as decentralization, privacy protection, and consensus-based rights verification. Users can autonomously control their assets and information and participate in decision-making.

However, current Web3 applications are still in their early stages, lacking genuine participation from product parties. Most projects only exist in a relationship between the "decentralized system" and users, lacking a final payee product party. This has led to many projects having short lifecycles, with their economic models exhibiting Ponzi characteristics.

Currently, Web3 applications have not been able to provide a clear value proposition for ordinary users. Products in fields such as DeFi, SocialFi, and GameFi have not yet addressed the actual problems and pain points of users in the Web2 world.

Nonetheless, Web3 is not a false proposition. In the past few years, significant progress has been made in this field. From simple public chains and tokens to the emergence of DeFi, NFTs, and blockchain games, the functional modules are continuously enriched. DeFi has established a decentralized self-circulating system, NFTs demonstrate the characteristics of value accumulation, while blockchain games are exploring the integration of blockchain technology with traditional gaming.

It is expected that the model lacking the participation of real product parties will continue for a considerable period of time, and the Ponzi model will persist as well. The Ponzi model, as an economic model, is not inherently right or wrong; the key lies in whether its design is elegant.

Real product parties willing to enter the Web3 ecosystem may need to meet the following conditions:

1. Regulatory issues on a global scale are resolved.
2. Improved infrastructure and significantly enhanced security
3. The concept of decentralization is widely accepted.
4. Pain points that Web2 cannot solve or are too costly, which can be effectively addressed by Web3.

This process may take quite a long time. Referring to the development history of AI, it took 16 years from the proposal of deep learning concepts to the widespread acceptance of ChatGPT. The development path of Web3 may also be lengthy, but the potential is enormous.