Weekly Learnings #16

Hi fam,

Today, I'm walking you through 5 things across Web3 that I’ve learned and found fascinating this week.

Enjoy!

🎙️ Spaces I spoke in this week:

5 things I’ve learned this week:

1. Friend Tech momentum continues.

Friend.Tech is the first viral social dapp deployed on Base. It builds on the concept of the financialization of social relationships. I’ve tested it for a few days, and I'm impressed by its simple interface. The app has a Telegram-like feel. You log in, connect your 𝕏, add some ETH, and you're set to trade shares of your 𝕏 friends. It bridges funds for you; there's no need to sign a transaction again.

The primary concern at the moment is safety. The app connects to your 𝕏 account (including an option to tweet on your behalf) but lacks a privacy policy. If you decide to give it a try, exercise caution, especially regarding the amount of money you bridge. Will it withstand the surge of hype? Time will tell in the coming weeks.

2. Web3 technology needs to get easier.

Mass adoption depends on consumer products that people love using. Friend.Tech may be an early example of a user-friendly, blockchain-based app; however, a broader spectrum of such products is essential for Web3's success.

Fortunately, the narrative is now moving from complexity and hype to simplicity and addressing real issues. Offering users great products is the best way to onboard them.

3. OpenSea made a strategic mistake in shifting to 0% royalties.

OpenSea plans to adopt Blur's 0% royalty model, starting February 2024. This is a strategic mistake, effectively implying, “We lack a technical solution, so it's okay to bypass the terms set by artists/creators and pay nothing.” That’s not a long-term winning strategy.

In response, Yuga Labs is likely to announce their own NFT marketplace, made by builders for builders/creators. I expect partnerships with other PFP collections, having them as launch partners. In 2022, Yuga made $107 million from royalties. If Yuga finds a way to ensure royalties are paid, it will be a massive incentive for other collections to join and build something truly Web3.

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4. Doodles shows IP to normies and unveils new merchandise.

Merchandise isn't merely a way to bring your IP into the homes of collectors. It's the primary revenue source for major media franchises. Check the graph below and note the yellow line, representing revenues from merch.

I envision PFP projects consistently collaborating with well-known brands to make their IP seen and to establish a revenue stream independent of royalties.

Merchandise will include not just physical products but also digital ones. The world is going digital, and the market size of digital wearables is projected to grow 2-3x by 2028. NFT projects are born digital-first, giving them a big advantage compared to established media franchises.

5. Opportunities in Web3 still exist.

In a bull market, we could remain passive and still turn a profit. However, it’s nearly impossible in a bear market. Opportunities still exist, but we must actively pursue them. I've shared a tweet outlining 15 different opportunities in Web3. If you build your foundations now, you will benefit big when the next bull comes.

Hope you enjoyed this newsletter and learned with me.

Have a great new week.

Beast