What kind of Web3 projects do users want?

With the development of the Web3 industry, the issues of VC tokens and meme coins have become increasingly prominent, and users' demands for projects are constantly changing. This article reviews the industry's development history, analyzes the current problems, and explores the characteristics of Web3 projects that users truly desire.

1. Review of the Development History of Web3 Projects

1.1 2017 ICO boom

In 2017, with the rise of Ethereum smart contracts, the ICO model became widely popular. Many projects raised funds through white papers, but this also exposed numerous problems:

• Lack of regulation, rampant fraud projects
• Insufficient investor education, serious blind following
• The project lacks real value and is severely inflated.

1.2 Entry and Endorsement of VC

To address the chaos of ICOs, venture capital ( VC ) has begun to enter the blockchain field on a large scale:

• Reduce fraud risk through due diligence
• Standardize project fund management
• Provide resource support and strategic guidance
• Endorse the project to enhance credibility

The involvement of venture capital has, to some extent, standardized projects, but it has also brought new issues.

Limitations of 1.3 VC Coin

With development, the VC coin model has also exposed many problems.

• Conflicts of interest may harm user interests
• Unable to solve the long-term development issues of the project
• Some projects collude with VCs to deceive retail investors

1.4 The Rise of Inscription and Fair Launch Models

In 2023, the rise of inscription technology and the Fair Launch model reflects users' pursuit of decentralization and fairness. However, there are also some issues:

• Fairness is in doubt, and it may be manipulated by a few large holders.
• Insufficient liquidity, high transaction costs
• Lack of application scenarios and continuous development motivation

1.5 Meme Coin Phenomenon

In 2024, meme coin platforms represented by Pump.fun emerged, providing a complete token service process. However, there are also serious problems:

• A large number of scam projects, trust collapse
• False advertising is rampant
• Distort the market ecosystem, squeeze normal projects

2. User Demand Analysis

Through historical review, we can summarize the core needs of users for Web3 projects:

2.1 Continuous Construction Motivation

The project team should not receive a large amount of funding too early; there needs to be a mechanism to incentivize ongoing development.

2.2 Reduce Zero-Sum Game

Reduce pure speculation and let more participants benefit.

2.3 Effective Project Management

A reasonable governance mechanism is needed to balance the interests of all parties.

2.4 Continuous Value Injection

Bring continuous external value to tokens through practical application scenarios.

3. Characteristics of an Ideal Web3 Project

Based on the above analysis, an ideal Web3 project should have the following characteristics:

3.1 Reasonable Token Allocation and Release Mechanism

• The project team's token lock-up period is long
• Phased and conditional release
• Third-party regulatory fund usage

3.2 Effective governance structure

• Introduce the DAO mechanism
• Include key stakeholders
• Decision-making is transparent and public

3.3 Continuous Value Capture Ability

• There are clear use cases
• Able to continually attract new users and capital
• Form a positive value cycle

3.4 Technology and Application Innovation

• Solve practical problems
• Enhance user experience
• Expand new application boundaries

3.5 Compliance and Transparency

• Comply with regulatory requirements
• Sufficient information disclosure
• Accept third-party audits

4. Future Outlook

With the development of the industry, new trends that may emerge in the future:

• Deep integration of Web3 and AI
• Decentralized Identity and Data Sovereignty
• Bitcoin Ecosystem Innovation
• The regulatory framework is gradually becoming clear

Future Web3 projects must maintain the spirit of decentralization while complying with regulatory requirements; they must be innovative and have the ability to create sustained value. Only projects that truly solve user pain points and create real value can stand out in the future market.