Beyond short-term token speculation, which projects should we focus on that can generate sustained profits? | Bee Network
Axie Infinitys chart
Similar issues arose with STEPN, a fitness app that initially attracted users by offering token rewards to incentivize physical activity. However, as token supply increased and prices fell, user engagement declined, exposing the fundamental flaw of relying solely on token incentives to drive long-term engagement. Although Axie generated significant revenue from marketplace fees and in-game purchases, the project’s reliance on token growth and user expansion ultimately led to its failure when growth rates slowed. Similarly, STEPN, a fitness app that initially attracted users through token rewards, failed to maintain user engagement after the token price fell due to oversupply. Although Axie generated revenue through purchases and market fees, its business model was too dependent on user growth and token rewards, which ultimately led to its failure when growth slowed. Web3 Games vs. Web2 Games The challenges faced by projects like Friend.tech and Axie Infinity highlight a larger problem in the Web3 gaming space. Web3 games face challenges in revenue generation compared to traditional Web2 games. For example, a recently released Web2 game made $600 million in its first week — numbers Web3 games have yet to come close to. This isn’t because Web3 games are a bad concept; it’s because the technology is not being fully utilized, resulting in many missed opportunities. A major problem is that many Web3 games are still too focused on token-based systems where players are incentivized through financial rewards rather than actual gaming experiences. This over-reliance on token economics creates unrealistic expectations, and players are disappointed when the gaming experience fails to live up to the hype. To truly compete with Web2 games, Web3 projects need to shift their focus to what makes the games themselves fun and engaging. Technology should be used to enhance the gaming experience, rather than being the centerpiece of the game. To succeed, Web3 games must shift to a gameplay-centric model. Blockchain technology has the potential to deliver innovative experiences, but it should be used as a tool to enhance immersion, not as a driver of an entire economy. Web3 games can only reach their potential when the focus shifts from token economics to creating truly fun and engaging player experiences. So, what changes should be made? Financial indicators of success Web3 projects must go beyond simply focusing on token prices. Just as traditional tech companies track key metrics such as revenue, profit margins, and active users, Web3 projects should also do this by measuring actual user activity and value creation. The focus should be on identifying and defining a set of key metrics that are appropriate for a specific industry and business – this can only be achieved through more specific benchmarking with Web2 counterparts and active communication with customers. User Centered Design Another important shift is a focus on user experience (UX) – ease of use of interfaces and interactions with technology. Web3 platforms need intuitive, user-friendly designs to ensure their long-term growth. Currently, most experiences are complex, involving complicated wallet management and steep learning curves, which makes it easy for new users to give up halfway. Simplifying the onboarding process and improving wallet usability are key steps. Excellent projects like Privy, Dynamic, and Turnkey are working on solving these problems. Long-term user engagement is equally critical. Platforms must provide real value to ensure users keep returning, not just speculative rewards. For example, Audius enables artists to connect with fans in a meaningful way, adding value beyond token incentives. This, combined with the appropriate technical solutions, is exactly what is needed. Challenges of Utility Implementation One of the biggest challenges is scalability. Blockchains often face difficulties in processing a large number of transactions at a low cost. For example, Ethereum’s high gas fees have hindered wider adoption, and developers are turning to other chains such as Sui and Solana. Interoperability is also an ongoing issue, as many platforms operate in isolation. Cross-chain solutions like Polkadot and Cosmos are making progress, but they have yet to truly become market leaders. Finally, regulation is always a major challenge. This has eased somewhat with the approval of ETFs, but there are still concerns and blurred legal lines that need to be addressed. Tóm lại là Web3 has tremendous potential, but to achieve lasting success it must move beyond token speculation. Projects like Friend.tech and Axie Infinity have shown that while hype can lead to quick gains, it does not equate to sustained long-term growth. To thrive, Web3 platforms must focus on creating real value — which begins with: Build products that actually work Track meaningful metrics like active users and transaction volume, not just token price Build for users Create a seamless and engaging experience for users Not just hype based on speculation, but prioritize the practicality of the product. Simplifying the user experience and solving real needs will foster long-term user engagement. Overcoming technical challenges such as scalability, interoperability, and regulation is critical to broader adoption. The future of Web3 lies in projects that combine innovative technology with practical, user-centric solutions to create lasting impacts that go beyond token economics. Tuyên bố miễn trừ trách nhiệm The editor of this post holds investments in HNT (Helium) and GEOD (GEODNET) but is not the author of this post. The Blockcrunch Podcast (“Blockcrunch”) is an educational resource designed to be informative and for informational use only. Blockcrunch produces a weekly podcast and newsletter that often covers Web 3 projects and may discuss investments in which the host or his guests have financial risk. Some Blockcrunch VIP posts are written by contractors at Blockcrunch, and these posts express the contractors independent opinions, not Blockcrunchs official position. Blockcrunch requires contractors to disclose their financial exposure to the projects they write about, but cannot fully guarantee that there will not be such conflicts of interest. Blockcrunch itself will not buy or sell assets covered within 72 hours before or after any content is published; however, its directors, employees, contractors, and affiliates may buy or sell assets before or after any content is published, and will make every effort to disclose relevant information. The opinions expressed by Blockcrunch guests are their own. Blockcrunch, its registered entities, or any associated persons are not licensed to provide financial advice of any kind, and content on Blockcrunchs podcast, newsletter, website, and social media should not be construed as financial advice. Blockcrunch also receives compensation from its sponsors; sponsorship information should not be considered financial advice or an endorsement. This article is sourced from the internet: Beyond short-term token speculation, which projects should we focus on that can generate sustained profits? Related: A look at the 21 projects selected for the a16z CSX Accelerator Original | Odaily Planet Daily ( @OdailyChina ) Author: Azuma ( @azuma_eth ) In the early hours of this morning Beijing time, Jason Rosenthal, partner of a16z Crypto, announced on X the 21 projects selected for the a16z Crypto Startup Accelerator (CSX) Fall Program. According to the official description of a16z Crypto, the projects selected for this accelerator program come from 11 different countries, including Austria, Brazil, Bulgaria, Canada, Germany, Japan, Poland, Portugal, the United Arab Emirates, the United Kingdom and the United States (including Puerto Rico). The project categories cover all stacks of the cryptocurrency ecosystem, including AI, DeFi, infrastructure, as well as photo sharing, mapping and more C-end applications. 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