[Short #161] Ecosystem Utility
PLUS: 😱 I'm taking a break
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Level 5: Ecosystem Utility
A few months ago I shared my Utility Framework. I was satisfied with what I came up with, but I believed there might be more to it.
As the space continues to evolve, the frameworks we use evolve as well. I even called myself out 😂
Earlier this week, I had a great conversation regarding interesting activations and trends in the industry, particularly with NFTs.
It was during this conversation when I realized there was a 5th layer when it comes to thinking about utility: the ecosystem.
When we think about utility for a specific project or collection, it’s precisely that. However, that utility can impact the ecosystem as well:
Direct - Utility that the broader web3 community directly benefits from. Think open-sourced code.
Indirect - Utility in the form of inspiration and innovation to push the space forward. For example, Starbucks has made large web2 brands’ ears perk up as the coffee brand is rethinking what loyalty is and could look like.
Or how BAYC has innovated upon what commercial rights could look like as a marketing channel.
Let’s look at some more examples of this.
Limit Break
Earlier this week, I mentioned that Limit Break will be revealing a new community royalty concept.
The primary beneficiaries of this innovation will benefit the Limit Break community, but will also benefit the broader ecosystem:
[Indirect] Bringing the concept of community royalties top of mind through this announcement and in January during the actual reveal of the mechanics
[Direct] Open source
Keen observers called Gabe out, noting that the concept itself isn’t new, which is true.
Aside from the nuance of whether the concept is ‘new’ or not, the indirect ecosystem utility of the various innovations and implementations from players in the space inspire other players to create their own version.
In this case, Limit Break is remixing, modifying, and potentially improving upon it. The open-source code is the cherry on top.
Azuki
The Azuki team has not only provided new innovations to the space, but also open-sourced them.
ERC-721A Standard: The team created a more gas-efficient minting standard that has been adopted by many other projects. This is evidenced by their Github code repository, which has been forked 747 times 😳
This means 747 other users have copied the code and modified it for their own use cases, or at least played around with it. I’m sure many others have used the original 721A code for their own purposes as well.
PBT Standard: When Azuki announced their Physical Backed Tokens (PBT), they also open sourced the code for other builders to utilize.
Less popular since not everyone is focused on merging physical and digital goods, but still notable.
Nouns
Nouns have been highlighted as a great example for DAOs, decentralization, and CC0. CC0 is a Creative Commons license, allowing anyone to use Nouns creative however they please. This has allowed a lot of creative initiatives to spread Nouns goodness far and wide.
This has provided indirect utility to the ecosystem inspiring other projects like Moonbirds, Goblintown, Rekt Guy, and others to do the same.
AAVE
AAVE is a DeFi liquidity protocol that allows users to borrow, lend, and build on top of. Over $5.5 billion is locked on applications using this protocol.
Looking at AAVE’s Github profile, we see several open-source code repositories.
Looks like direct ecosystem utility to me!
Putting it all together
My bad…
At this point next year, maybe there’ll be even more levels to my utility framework 🤷🏻♂️
When we think about the order of operations, it goes back to the core project and effort itself. It’s important to solidify L1 - L4 first, then understand how L5 can be incorporated or expanded upon.
When executed well, providing utility to the ecosystem can help strengthen the qualitative aspects of project: Brand and reputation. And those secondary ripple effects will positively inspire and impact others building in the space, and on and on.
It’s hard to quantify, but the broader ecosystem and community recognizes and remembers.
I’m taking a break
NOOOOOOOO! TPAN I READ YOUR PUBLICATION EVERY DAY!
Don’t worry, I’ll be back. If you miss me, I encourage you to check out the archive. Most of the content is still applicable today.
I’m taking the next two weeks to rest, recharge, and lay the groundwork for new initiatives.
I’m excited to share more updates on what I’ll be up to soon 😏
For those celebrating, I hope you a very Happy Holidays!
Love the thoughts. What are you thinking about the Nouns foundation and the legal framework they have proposed?