The path to 7B DeFi users

Incentives drive behavior

Money remains foundational to society and its evolution has set the stage for massive disruption. It’s our job as builders to prioritize use of the most efficient systems and the general population will come when we make things so clearly better, it’s irrational to stick with the status quo.

We must constantly reinforce user desires at every stage of their life cycle. We must deliver useful solutions which are so stupidly simple that a better life is just one-click away. There are two types of incentives we can apply to achieve the effect we’re seeking: extrinsic and intrinsic.

For example, an extrinsic incentive could be using tokens to reward platform participation, but this type is not as strong as the latter. We’re engaged in a bare-knuckle brawl for the hearts and minds of the public and once this is taken seriously, we’ll enjoy lasting market penetration.

Network effects flywheel

Every new entrant to blockchain makes the networks more valuable and likely to succeed. We should consider from first principles what is motivating our users and craft a win-win situation for them. If they enjoy the consequences of their actions, they’ll return repeatedly.

Referrals and word-of-mouth have the largest influence on brand growth. With this understanding, it is very important to delight users in every flow.

Conclusion

Positive reinforcement and unwavering benefits are how we can achieve usage by the global population. If anyone says you’re not early, just look at the stats. Bitcoin has less than 1m active addresses. That’s about enough to replace the population of Fiji, an island you can drive across in a day. We have a long way to go, but I know we’re guided by the best motivation.

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Originally published at dynamic.fi on August 4th, 2022

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