[BootStrap of Web3 Network (Feat. Momentum(@MMTFinance)] Today, we will explore the business advantages of Web3 protocol economies compared to Web2 platform businesses through examples. 1. Network Effect The Network Effect refers to the phenomenon where the value of a product or service increases as the number of users grows. Looking at the structure step by step, it is as follows: ▶ Initial: Few users → Low value ▶ Growth: Increase in users → Explosive growth in content/transactions ▶ Critical: Once the number of users exceeds a certain level, self-sustaining growth occurs ▶ Monopoly: New entrants find it difficult to catch up Once the Network Effect occurs and initial demand is formed, it influences the demand of other participants, creating a virtuous cycle where the value of the network gradually increases. Taking a DEX like Momentum as an example, as the number of traders and LPs increases, the spread decreases, trading volume increases, and more participants are attracted. 2. Cold Start Problem However, typical ventures in Web2 face the Cold Start problem (difficulty in attracting initial users) as illustrated below. For example, in the early days of Uber, there was no incentive to use Uber's service until there were enough cars (drivers), making it difficult for Uber's network to expand. 3. Advantages of Web3 Business In the case of Web3, it utilizes Financial Utility (token incentives) to provide token incentives to early participants, thereby avoiding the Cold Start problem. Through the bootstrap of the network, the protocol is activated, Application Utility (practical usability) increases, and Financial Utility (token incentives) gradually decreases. 4. Let's take Momentum as an example 1) If Momentum were a Web2 venture ▶ It is a high-speed, low-cost parallel processing blockchain based on the Move programming language!! ▶ It applies an efficient liquidity provision model compared to existing AMMs based on CLMM!! ▶ It has a ve(3,3) tokenomics with 100% emission, transaction fees, and a reward redistribution system!! 2) Current Momentum - Utilizing Financial Utility ▶ If you Yapping, you get a Title Deed NFT ▶ If you deposit in the Buidlpad campaign, you get tokens ▶ If you deposit LP, you get tokens based on Bircks Result: Increase in LP, decrease in slippage, increase in participants - click Ultimately, by utilizing such token incentives, there is an advantage in securing initial liquidity and users, thereby bypassing the Cold Start problem. However, if the network effect does not activate afterward, it will fail like most projects we know.