Research Summary
The report explores the evolution of the internet and crypto markets, focusing on the “Attention Theory of Value” and the emergence of “Publisher-Exchanges.” It discusses the integration of asset trading with user engagement, the potential of Direct Value Issuance (DVI) over traditional ads, and the financialization of information markets. The report also highlights the power of tokens in coordinating real-world actions and the potential of consumer crypto applications in transforming the economy.
Key Takeaways
The Attention Theory of Value and Publisher-Exchanges
- Attention as a Valuable Asset: The report posits that in the crypto market, asset pricing is driven by the community’s investment of time, energy, and money, as seen with the rise of memecoins. This theory is known as the “Attention Theory of Value.”
- Emergence of Publisher-Exchanges: The concept of “Publisher-Exchanges” is emerging, where consumer apps in crypto will blend the trading of new assets with the aggregation of attention. These platforms aim to create engaging core experiences that attract users and seamlessly integrate asset issuance and transfers.
Direct Value Issuance (DVI) Over Traditional Ads
- Critique of Traditional Ads: The report criticizes the ad-based model for customer acquisition for interrupting user experience and being less effective due to its “leaky” conversion funnel.
- Advantages of DVI: Direct Value Issuance (DVI) is proposed as a superior method, where merchants pay users directly with tokens instead of using traditional ads. DVI allows for a more seamless integration of advertising, potentially increasing efficiency.
Financialization of Information Markets
- Evolution of Information Markets: Information markets are evolving beyond static web pages to include diverse sources like forum threads, group chats, and private databases, offering users ways to filter signal from noise.
- Potential of Crypto Primitives: Crypto primitives are believed to have the potential to enhance information markets by financializing information quality or integrating markets into primary information-sharing venues.
Power of Tokens in Coordinating Real-World Actions
- Effectiveness of Mission-Driven Tokens: Tokens with a mission are more effective in coordinating real-world actions, enabling funding for ventures often overlooked by traditional financing.
- Collaborative Funding Model: The collaborative funding model facilitated by tokens allows for the aggregation of capital from diverse sources, granting investors significant ownership and influence over the outcomes of their investments.
Potential of Consumer Crypto Applications in Transforming the Economy
- Generative Shift in the Economy: The consumer crypto applications are expected to introduce a generative shift in the economy by leveraging the tight loop between attention, capital formation, and coordination.
- Global Scale of Trades: This model allows for trades of time for money and vice versa across a global scale, opening up new opportunities for economic activity.
Actionable Insights
- Explore the Potential of Publisher-Exchanges: With the emergence of Publisher-Exchanges, there is an opportunity to explore how these platforms can create engaging core experiences that attract users and seamlessly integrate asset issuance and transfers.
- Consider the Advantages of DVI: Businesses should consider the advantages of Direct Value Issuance (DVI) over traditional ads, as it allows for a more seamless integration of advertising and potentially increases efficiency.
- Investigate the Use of Crypto Primitives in Information Markets: The potential of crypto primitives to enhance information markets by financializing information quality or integrating markets into primary information-sharing venues should be investigated.
- Understand the Power of Tokens in Coordinating Real-World Actions: The effectiveness of mission-driven tokens in coordinating real-world actions and enabling funding for ventures often overlooked by traditional financing should be understood and leveraged.
- Recognize the Potential of Consumer Crypto Applications: The potential of consumer crypto applications to introduce a generative shift in the economy by leveraging the tight loop between attention, capital formation, and coordination should be recognized and utilized.
