Octopus Network: Three Tips for Web3 Startups in a Bear Market

Bear markets directly affect the participation of crypto protocol communities and on-chain interactions. The plummeting prices of tokens pose a significant challenge for Web3 startups, but it is also a great opportunity for Web3 entrepreneurs to return to their roots, clarify their objectives, and contemplate the right development path.

Suggestion 1: Refine Product Value and User Experience

In a bear market, you must do more to prove to investors that your project is still worthwhile. We will optimize in a lighter manner, gather feedback, and continue to iterate and improve.

------Leo Ngo
Co-Founder of Yogain

First, if Web3 is merely about resisting the centralized monopoly of Web2, then do not talk about disrupting Web2. The innovation of Web3 applications should revolve around problems that Web2 cannot solve or does not solve well, bringing a tenfold value increase to users, in order to have the opportunity for great innovation.

For example, using cloud rendering solutions to address the issue of insufficient rendering computing power for immersive experiences in the metaverse.

Web2 solutions require "globally" "pre-deployed" distributed computing power to solve latency issues, and the high costs have delayed the implementation of cloud gaming solutions. Through the Web3 paradigm, a decentralized approach allows players to contribute computing power to build a global edge computing network, achieving real value realization.

This is how Portalverse Network addresses the problems that Web2 struggles to solve in the cloud rendering field, thus creating substantial value increments.

Second, opacity = untrustworthiness; poor user experience is destroying Web3 applications.

• If users do not know how to view on-chain information, it is opaque.

• If users need to exert tremendous effort to find and verify data, it is opaque.

• If 99% of users are unwilling to check, it is opaque.

Current Web3.0 applications have user experiences that are hard to describe, such as the opacity of asset status, the management of waiting times for on-chain interactions, and unclear feedback on operational actions. These issues keep the majority of mainstream users who recognize the value of blockchain outside the crypto world.

In fact, Web3 product designers need to "design for trust," using design language to guide users and bridge the cognitive gap for the public, clearly conveying the unique values of blockchain: decentralization, openness, transparency, and immutability.

1. The principle of asset security is, in my opinion, the most important part of the design principles that differentiate Web3 from Web2, and it needs to be considered at all times:

• The current status of users' assets.

• Transparency and clarity of information during transactions.

• Clarification of expected Gas consumption.

• Clear feedback upon transaction completion.

• Clarification of where historical transaction data is stored.

• Historical transaction records should be easily accessible.

1. The principle of eternal guidance is often overlooked in the early stages of Web3, specifically:

• Managing users' waiting times by displaying congestion status, expected times, timeout feedback, etc.

• Designing onboarding content for newcomers.

• Minimizing intimidating technical jargon as much as possible.

1. The principle of continuous feedback means users should always know what just happened, what is happening, and what will happen next.

• Designing a continuous feedback mechanism during interactions to help users understand what is happening and reduce anxiety.

• On-chain interaction feedback, such as the success or failure of transactions or verifications, helps users understand what just occurred.

• Allowing and anticipating potential mistakes, providing solutions based on the irreversible nature of on-chain interactions.

Suggestion 2: Place Greater Emphasis on Content and Build a Highly Engaged Community

In a bear market, it is advisable for all Web3 startup teams to focus more on community members who truly believe in the project's value and can add value to it.

------Amos Zhang

GM of NEAR Asia, Founder of MetaWeb Ventures

The market and community strategy during a bear market focuses on concentration and sedimentation. What we should care about is 100 users with strong consensus and high participation in community governance, rather than 10,000 token traders.

First, there is no need to obsess over marketing activities for the market/community.

• In a bear market, there is no need to hire external PR/marketing agencies. Qiao Wang, co-founder of DeFi Alliance, once stated that among the dozens of project teams he knows, all have tried to hire marketing service providers, but not a single one succeeded.

• During non-expansion phases, there is no need to attend large conferences, as the essential goal of attending such events is to attract potential employees.

Second, content narrative should filter the top 1% of community contributors in the project's market.

• A concise and engaging narrative is the foundation of community trust.

• Early adopters of the narrative are more likely to become core contributors.

• The ability to narrate often has a significant impact on valuation.

Third, continuous content builds community consensus and engagement.

• Repeated output: Repeatedly telling the project's vision narrative, value propositions, and product progress based on different stages and scenarios.

• Content sedimentation: Its value not only serves the present but also helps establish trust with future users.

• Viral dissemination: Only good content can lead community members to spread it voluntarily and take pride in sharing.

Suggestion 3: Do Not Treat Token Economics Merely as a GTM Strategy

Tokens can be a double-edged sword, as falling token prices usually lead to a decrease in users, but they remain a powerful tool for project launches and seed user markets.

------Wayne

COO of Portalverse

The topic of token economics is placed third because the advantages of tokens in building network effects are so strong that prematurely strengthening token incentives can easily lead startup teams to misjudge product value. It is worth noting that Mirror has not issued tokens to this day; Uniswap and Curve had already gained value recognition before issuing tokens.

Without a product as traction, token rewards will create more noise. The key is that in a bear market, airdrops and rewards cannot achieve the effects of a bull market, so do not overuse tokens to enhance network effects. If possible, it is best to prove that the product fits the market without tokens first.

On the other hand, token economics is not just a GTM strategy. Trent McConaghy, founder of Ocean Protocol, has pushed token design to the engineering level, proposing the concept of token engineering. Token engineering is a socially responsible field of engineering practice that designs and validates token models for crypto networks through rigorous analysis.

Protocol developers should design the "token economic model" based on the rights and interests structures of all participants, allowing protocol participants to believe that the crypto network serves everyone, and Web3.0 aims to return the value created as much as possible to participants.

------Louis

Founder of Octopus Network

Innovating in token engineering or economic models in any unprecedented way is actually very difficult. This is also why Ethereum is still optimizing and iterating its token economic model eight years after the white paper was published.

I recommend that every Web3 startup team take the course "Token Engineering for Web3.0 Applications" to gain a comprehensive understanding of token engineering design and its core points.

Course Link

In fact, a very good GTM strategy for Web3 startup teams in a bear market is to participate in startup accelerators.

Octopus Accelerator, as a hub for Web3 startups, has already helped multiple projects, including the creator economy protocol DEIP, the order book decentralized trading protocol Fusotao Protocol, and the decentralized cloud rendering protocol Portalverse Network, grow into popular Web3 applications, all of which have completed financing at the million-dollar level.

First, Octopus Accelerator provides $1 million in funding for 20 outstanding Web3 application chain startup teams each year. For every startup team, it is essential to raise funds as much as possible, rather than waiting until the need arises.

Second, the curriculum of the Octopus Accelerator Web3 Startup Camp covers seven major themes: "Introduction to Application Chain Entrepreneurship," "Web3 Product Design," "Brand Marketing in the Web3 Era," "Building Crypto Communities," "Application Token Engineering," "Regulation in the Crypto World," and "Guidance and Sprinting for Financing." In the course workshops, mentors and project founders work together to decipher the application models of Web3, learning from each other across different projects and progressing together.

Third, the multi-chain network ecosystem and community of Octopus Network will provide continuous support to projects in terms of technology and promotional resources, allowing Web3 innovation projects to quickly acquire early key users.

We believe that the power of the community far exceeds that of individuals and teams, and the wisdom of the community far exceeds that of individuals and teams.

Currently, Octopus Network is about to close registration for the Fall 2022 Web3 Startup Camp, so please register quickly.