Market-Protocol Fit

 Cryptoeconomic protocols are market frameworks looking for potential product applications.

The core idea of market protocol fit is that in a highly decentalized system, the community finds product solutions itself. This happens in three steps:

1. Promise distribution- Selling a compelling idea within a framework
2. Utility Discovery- Prototyping new use cases, products and services
3. Ossification- Converging around a functionality and narrative

This means that crypto projects necessarily start with nothing but token-based incentives and narratives. And we must start with the circulation of “potential value” rather than a real product.

This happens in parallel with a-decentralized-brand-is-a-meme and a-brand-is-consensus to create Headless Brands.

There are three important things here

1. Promises must be compelling, and stake needs to be distributed broadly and fairly to those with whom the promise resonates.
2. Stakeholders must be empowered to experiment and discover meaningful utility.
3. A mechanism must exist to funnel resources and liquidity into promising experiments.

In this sense building a DAO is more about designing an organism (daos-are-digital-organisms) which is able to attract resources and thrive.

Other Related Meanderings: the-eight-metaphors-of-organization