New rules of connection in the web3 era | Elroy Cheo | TEDxSingapore

Key Concepts

Web3 as a merit-based system, Web3 ethos (open, democratic, rid of intermediaries), community-led growth, attention economy, shared ownership through tokens, community as a brand, digital-first institution.

Web3 as a Great Equalizer

The speaker emphasizes that Web3 is a "great equalizer" because it operates as a merit-based system rather than a credentialist one. In Web3, prior experience in traditional fields doesn't guarantee success, as the space is new and requires continuous learning. Trends and narratives change rapidly, necessitating a "perpetual student" mindset.

Example: The speaker shares an anecdote about "the cat," an anonymous online persona who is a successful trader and GP at top funds. The speaker initially knew nothing about "the cat's" background but built a meaningful relationship based on their online interactions and later cemented it offline. This illustrates how Web3 prioritizes merit and contribution over traditional credentials.

The Web3 Ethos: Decentralization and Democracy

The Web3 ethos aligns with Tim Berners-Lee's original vision for the internet: open, democratic, and free from intermediaries. The current Web2 landscape is dominated by tech giants like Google, Facebook, and Amazon, which control the data layer and monetize users as "co-monetized assets." Web3 aims to break these intermediaries and return control to users.

The speaker draws a parallel between the Web3 ethos and the concepts of authoritarian control versus democracy. Web3 is presented as a movement where "underdogs" challenge "incumbents," referencing examples like Wall Street Bets shorting Melvin Capital and the role of Twitter in Trump's election victories.

Community-Led Growth in Web3

The speaker discusses ARC, a Web3 collective with two user personas: "confident thrivers" (successful, time-starved individuals) and "interesting risers" (growth-minded individuals). ARC's core thesis is that a thriving community becomes an extension of the core team.

Step-by-step process:

1. Community Health OKR: ARC tracks "community health" as its main OKR, measuring the number of active contributors over time.
2. Catering to Core Motivations: ARC aims to supercharge brand loyalty by catering to members' core motivations.
3. Feedback Loop: The team conducts one-on-one interviews and surveys to understand members' perceived value.
4. Four Top Motivations: Access to the right network, growth opportunities, making money, and status.
5. Contribution and Reward System: Value is distributed equitably based on contribution, not just membership. Even famous members who don't contribute don't receive value.

The Attention Economy and Nonlinear Funnels

The speaker explains that community-led growth redefines traditional marketing funnels. In Web2, the funnel is linear: customers are pushed down until they transact and then exit. In Web3, the funnel becomes nonlinear.

Nonlinear Funnel:

1. Customers enter the funnel.
2. They are retained in the middle through a well-designed community experience that caters to their core motivations.
3. This retains their attention, which is crucial in the current "attention economy."

Attention Economy: Attention is the key resource. By trapping attention in the funnel, companies can continuously introduce new products.

Example: The speaker compares AliPay and WeChat Pay. While both aim to be super apps, WeChat has higher DAU and stickiness due to its community experience built around social interaction.

Shared Ownership and Digital-First Institutions

The speaker highlights that blockchain and tokens create additional value through shared ownership. Tokens allow for more efficient distribution of ownership compared to traditional equities.

Example: At ARC, members not only contribute to marketing, community management, user acquisition, and brand building but also participate in fundraising. ARC recently closed a round entirely seeded by its community.

The speaker concludes by stating that ARC is building a "digital-first institution" born out of a highly aligned community. This is no longer a thesis but a reality, contributing to ARC's mind share in the space. ARC's core activities include project incubation, advisory services, investments, and validator nodes.

Synthesis/Conclusion

The conversation emphasizes the transformative potential of Web3 as a merit-based, decentralized ecosystem that empowers communities and challenges traditional power structures. Community-led growth, driven by shared ownership and a focus on member motivations, is presented as a key strategy for success in the attention economy. The speaker's experience with ARC demonstrates how a digital-first institution can be built upon a strong, aligned community.