Regardless of the crypto-ness or VC-ness of the plan, from a business standpoint, in the graph of Traditional Network Effect vs. Token Network Effect, his problem is obvious.
Where the y-axis = Utility To User, the Traditional Network Effect can track all the way to the upper end of the scale, and tracks perfectly with the Overall Utility, as an ideal outcome of course.
But with the Token Network Effect, no matter how much of a boost there can be at the beginning, the ultimate Overall Utility is about halfway as high by comparison.
By design you're building for mediocrity.
One of the "secrets" when I was implementing exponential growth strategies was to "prosper better overall, by persuasively giving the customers more of their money's worth".
Interesting how that tradition compares to "persuasively give the customers more of our money than it's worth, since our current product isn't really worth money to begin with".
Where the y-axis = Utility To User, the Traditional Network Effect can track all the way to the upper end of the scale, and tracks perfectly with the Overall Utility, as an ideal outcome of course.
But with the Token Network Effect, no matter how much of a boost there can be at the beginning, the ultimate Overall Utility is about halfway as high by comparison.
By design you're building for mediocrity.
One of the "secrets" when I was implementing exponential growth strategies was to "prosper better overall, by persuasively giving the customers more of their money's worth".
Interesting how that tradition compares to "persuasively give the customers more of our money than it's worth, since our current product isn't really worth money to begin with".