The Web3 Industry Enters a New Era: Blockchain Space Oversupply and User Orientation

With the rapid development of Blockchain technology, the Web3 industry is undergoing a significant transformation. The previously supply-oriented economic model has gradually proven to be limited in effectiveness, while new ideas centered around user demand are emerging. This shift not only affects the development direction of projects but also alters the incentive mechanisms of the entire industry.

After the gradual improvement of large-scale infrastructure projects such as Rollup, the rise of the appchain (AppChain) marks that the blockchain space has entered a stage of oversupply. The supply-side economics philosophy that the Ethereum community has long championed seems to be no longer suited to the current situation. The limitations of the past approach of blindly incentivizing developers, even when a project has only a handful of users and lacks growth potential, have shown its limitations.

Funding programs for well-known projects, such as grants for a trading platform and a Layer 2 project, have become prime cases of (DAO) mismanagement of DAOs and zombie applications. With the changing global political and economic landscape, the cryptocurrency industry is maturing at an accelerated pace. In this environment, the focus of the industry has finally shifted from serving developers and technologists to meeting the needs of consumers and ordinary users.

Those protocols, projects, and developers that can recognize this shift early will gain an advantage in the new era of large-scale Web3 applications. Notably, the Cosmos ecosystem has consistently been at the forefront of innovation compared to the Ethereum community, as evidenced by its early modular design and the latest concepts of chain abstraction.

The stakeholder planning (VIP) of an emerging project has attracted a lot of attention in the industry. The core idea of the program is to rebalance and harmonize incentives among ecosystem participants such as appchains, validators, and users, encouraging them to participate responsibly in the consensus security and governance of the main chain, and to use blockchain resources wisely. In terms of specific design, the project draws on the experience of successful cases in the industry, and cleverly integrates concepts such as voting rights and native token staking.

This project breaks the traditional token economics model of the equity proof ( PoS ) blockchain, providing rewards not only to governance nodes but also directly to application chains and end users. Notably, the project has designed a unique token unlocking mechanism that requires users to maintain activity to fully unlock rewards or stake the reward tokens into the main chain's liquidity pool, thereby enhancing the overall ecosystem's liquidity, interoperability, and security.

Attempts at Innovation and Balance

The design concept of this new project reflects a profound consideration of the current state of the industry. It aims to make its native token the base currency within the ecosystem while also attempting to find a balance of interests and responsibilities among governance nodes, application chains, and ordinary users. At the same time, the project is committed to avoiding the problems of fragmentation within the Cosmos ecosystem, as well as the inconsistencies in incentive mechanisms present in the Ethereum ecosystem.

This innovative attempt will undoubtedly provide new ideas and possibilities for the development of the Web3 industry. As more projects begin to focus on user needs and the overall health of the ecosystem, we have reason to expect that Web3 technology will achieve true large-scale applications in the near future.