The end of NFT royalties and the need for Web3 Strategy

 The end of NFT royalties is a good thing.

Web3 and NFT projects were built in a world that relied on royalty payments. But those royalties are going away, and a lot of people are worried about how their projects will survive without the revenue they generated.

The latest example in this regard is the move from @LooksRare platform.

Let's face it: NFTs have not lived up to their promise. We've been waiting for the "Web 3.0" we were promised, but all we've seen are cool artworks and in most cases - useless tokens.

The problem is that incentives were misaligned in NFT projects. Project teams were incentivized to get as many users as possible trading their NFT tokens, but that meant churning out new tokens without regard for customer needs or long-term vision.

It was all about getting money from trading fees, so they didn't care about delivering value to customers or building an ecosystem around their token—they just wanted more trading volume so they could collect more fees!

We need to change our thinking about how these tokens work and what they're for if we want them to succeed in the long term.

The end of royalties will help us do that by forcing project teams to rethink incentives and focus on delivering value instead of just focusing on trading volume.

One of our clients was growing their community, but they weren't sure how to keep growing. They had built a strong community around their NFT-based project, but the time had come for them to move beyond just trading, especially with the end of royalties on the horizon.

We recommended that needed a strategy that would allow them to grow their community while aligning it with the project's growth goals. This would require a solution that would be beneficial for both parties i.e. the project team and the community.

We worked together to develop a long-term vision and a strategy to reach that vision while engaging and benefiting the community. This allowed them to leverage their existing community and grow in accordance with their own goals in a true web3 manner rather than focused on royalties.

Linkage between Market Liquidity and Startups

 Yesterday the market was positive & people are excited. Today, it might be negative. Instead of reacting to the market, let's pause & reflect.

We discuss financial markets along with the web3 eco-system because both are closely linked.

Thread on traditional finance & Web 3

This becomes apparent when you start treating web3 communities or NFT projects as Startups.

Once this is established, the next step is to understand the interplay of web2 startups and Bull/Bear-driven liquidity cycle

When the bull market is in full swing, there are plenty of opportunities for startups to get funding and make a big name for themselves.

But what about when the market turns?

What does it take for a startup to succeed during a bear market?

Startup success is all about timing, and knowing how to time your project right is one of the best ways to ensure that your startup will be successful no matter what's going on in the economy.

In fact, it's not just about knowing when to launch your product—it's also about knowing when to pull back.

When you're working with funds that are tied up in projects that aren't yet profitable, it can be tempting to continue pushing forward until you reach profitability… or until you run out of money.

But as we've learned from watching startups fail, this kind of blind optimism is often what leads companies down the road toward failure.

If you want your business to succeed in a bear market and beyond, then here are some tips:

1) Know when it's time to pull back on your spending and focus on cash flow management.

There may be times when it seems like there simply isn't enough money coming in (or going out) at any given moment, but you always have a choice to either keep spending or stop.

The key is knowing when it's time to stop spending, which can be difficult for many entrepreneurs who are used to living on the edge.

2) Look for ways to cut costs and make more money with less expense.

One of the most common mistakes that startups make is continuing to spend money on things that don't actually move the needle—and this applies not only to advertising but also office space, employees, and anything else that doesn't directly contribute to revenue.

3) Get help.

If you're overwhelmed by the stress of trying to manage your business then it might be time to consider hiring a web 3 strategy consultant who can help set the vision and strategy that can be executed during the down months, so that the startup is ready for the next round of liq.

One who doesn't charge you an arm and a leg, rather invests in the business through sweat equity and long-term partnership so that the long-term incentives are aligned