Web 3 Revenue Primitives
Core primitives are a set of concepts that are innately understood but cannot be expressed in simpler terms.
This repository is an attempt at list of web3 revenue primitives, created by, for, and at ETHMagicians Prague 2018 by the business models ring.
- Web 3 Revenue Primitives
- What did we miss?
Marketplace Percentage Fee
This model is where you take a % of each trsanction on your platform. It is popular with exchanges.
Sell a bunch of ERC20 tokens at once, or during a window of time.
Some popular ICO models:
- Security Token Offerings
- Interactive ICO
- Initial Supply Auction
- Simple Agreement for Future Tokens
- Cryptocurrency Airdrop
Some popular ICOs:
Types of tokens:
Continous Funding Models
Sell a bunch of ERC20 tokens over time.
A sidechain is a separate blockchain that is attached to its parent blockchain(mainchain) using a two-way peg. You can move assets to the sidechain and then back to the parent chain. Sidechains need their own miners. These miners can be incentivized through ‘merged mining’, whereby two separate cryptocurrencies, based on the same algorithm, are mined simultaneously. Here is a list of some of the Sidechain Projects:
State channels are basically two-way pathways opened between two users that want to communicate with each other in the form of transactions. Here, only the final outcome needs to be included in the form of one single transaction on main chain. Other transaction's are done on off chain. Few know projects around it are:
Non Fungible Tokens
Non fungible tokens are tokens that are unique from one another
Famous NFT projects:
Subscriptions are a recurring exchange of value over time.
Identity Standards Proposals:
Projects in the Identity space:
Smart contracts that control credit scores, loan issuance, and interest payments will run on top of protocols like Ethereum. These debt contracts will be hashed into existence and generate hashflow for the lenders. This is a flow of hashflow above the base layer protocol.
The job of a search engine like Google is to collect and curate data from the Internet. This is one of the most valuable curation projects in the world. The key with curation markets is to get all of the incentives aligned so that you can trust the underlying data. The term used in the industry is the Token Curated Registry. It’s not just about creating a list. It’s about creating a list you can trust by incentivising curators to do the research for you.
The creation of new things on chains will have value. Selling them to people who want them will generate hashflow. Making these unique tokens takes a lot of effort. You have to get a community of people to agree to their value.
Questionable / Possible Ponzi Schemes
TODO - What else should live here?
- Determining a fair rent model of ENS = NOTE: At ENS, the purpose of the rent is to avoid squatters rather than making profit
What did we miss?
Coming to Prague this October? Join us on the business model ring at ETHMagicians 2018