Web3 networks are fundamentally different from traditional companies

Yesterday one of the FNDX team had a stimulating conversation about the FNDX Fundamentals thesis with a new-to-web3 friend. At its core was getting through the concept that token-incentivised projects are bottom-up different from traditional companies in every way.

In a web3 project
- the token incentivises participation. Not fiat (as salaries) or shares (as equity)

- people are both service providers and service consumers; the project itself loosely mediates. In a traditional company there's a clear line between the producer (company) and consumer (user)

- the token is used to provide the service and use the service. You don't pay for goods from a traditional company with its shares

- any token holder can participate in governance. In a traditional company this is limited to equity shareholders

- therefore, value flows to all token holders, not just to equity shareholders, making it a democratic process of participation and reward sharing

- usage/"sales" can be verified on-chain in real time, not when the company chooses to release its figures to investors.

As the FNDX thesis describes, traditional valuation and evaluation models fall apart. You need one built from the ground up. Which is what FNDX Fundamentals is.

(ends)

Photo by Gareth Harper on Unsplash.

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