Cryptoeconomic protocols are market frameworks looking for potential product applications.
The core idea of market protocol fit is that in a highly decentalized system, the community finds product solutions itself. This happens in three steps:
- Promise distribution- Selling a compelling idea within a framework
- Utility Discovery- Prototyping new use cases, products and services
- Ossification- Converging around a functionality and narrative
This means that crypto projects necessarily start with nothing but token-based incentives and narratives. And we must start with the circulation of “potential value” rather than a real product.
This happens in parallel with a-decentralized-brand-is-a-meme and a-brand-is-consensus to create Headless Brands.
There are three important things here
- Promises must be compelling, and stake needs to be distributed broadly and fairly to those with whom the promise resonates.
- Stakeholders must be empowered to experiment and discover meaningful utility.
- A mechanism must exist to funnel resources and liquidity into promising experiments.
In this sense building a DAO is more about designing an organism (daos-are-digital-organisms) which is able to attract resources and thrive.
Other Related Meanderings: the-eight-metaphors-of-organization