I am increasingly convinced of one thing:
The most important essence of Web3 is not decentralization, but rather using money to incentivize the right behaviors.
Almost all Web3 products that can truly succeed are essentially X-to-earn:
Using money to incentivize and automatically filter behaviors, no longer educating users.
The breakout growth of Binance Wallet last year came from airdrops and staking, incentivizing the best project tokens for user growth and traffic.
The explosive success of Polymarket is fundamentally the same:
Using money to incentivize prediction accuracy, using money to incentivize the honesty of oracles, and also using money to attract insiders and experts to participate.
It does not ban noise, but prices noise as “expensive”.
It has formed a stable positive cycle:
The higher the quality of information, the greater the depth of transactions; the greater the depth, the higher the quality of predictions.
So when I design new Web3 products now, I think about a key question:
What traditional problems can be cleverly solved by monetary incentive mechanisms?
If the incentives are right, the ecosystem will grow on its own;
If the incentives are wrong, no matter how good the narrative and product are, they cannot save it.
Those who want to catch up with this wave of Polymarket can take a look at its oracle token:
$UMA #Web3 #IncentiveDesign #Polymarket #Crypto