Self-sufficiency is incredibly important in Web3. Projects that can produce what they require in-house without relying on external support or funding stand exponentially higher chances of success than those that don’t.
The two main aspects of self-sufficiency that need to be achieved in order for a project to be considered truly self-sufficient are expertise and funding.
Expertise
As part of its core team, self-sufficient projects have individuals capable of doing everything it requires. In Web3, this typically includes a full suite of leaders, front-end developers, back-end developers, marketing experts, and community managers.
Funding
A truly self-sufficient project can generate enough cash to fund itself through a sustainable revenue stream or streams. It does not need to rely on external funding to exist or even grow.
What about as an investor?
When choosing an NFT to invest in, there are several reasons why self-sufficient projects are just better.
Sustainability
Projects that are self-sufficient are more likely to be sustainable in the long run. They are not dependent on external funding and can continue to operate even if the market conditions change or funding sources dry up.
Control
Projects that are self-sufficient have more creative freedom and control over themselves. They can focus on what they believe in without being influenced by external parties — some of whom may have different goals or interests.
Community Building
Self-sufficient NFT projects are more likely to build strong and dedicated communities around their work. These communities can help support the project and promote its growth over time.
Self-sufficiency is a spectrum!
It is extremely rare for projects to be truly self-sufficient. Most projects fall within a spectrum of self-sufficiency. So as a project leader, don’t despair if occasionally, you require the help of an external developer or even require external funding. This article simply serves as a reminder that it is good to work towards self-sufficiency.
In summary, self-sufficiency allows projects to build sustainably and form long-lasting communities around their work. These solid foundations greatly increase a project’s chances of future success. As an investor, it’s worth considering a project’s degree of self-sufficiency before deciding to invest.
Written by: Jpegtologist
