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Project Funding the Web3 Way
Tired: Pitches with VCs
Wired: VCs ape into your coin
“Blockchain funding is a pyramid scheme, change my mind.”
I was chatting recently with a friend who runs a web2 project, about the eternal issues of securing project funding, generating revenue, and managing the roadmap.
Over the last few years, I’ve transitioned my practice from web2 to web3 development. And while I know a lot about the solving problems in Solidity, I’m still trying to sort out a big picture where the crazy new blockchain project funding approaches don’t resemble pyramid schemes.
In addition to following lots of success stories, I’ve been close to a few projects funded by their own community and token. Incentivizing all the actors in the micro-economy of your project is a key challenge. But done right, blockchain tech and practices can unleash a torrent of funding.
Remember, big investors almost always want some measure of control so they can maximize their return on investment. Blockchain just democratizes the process.
However you raise and manage your funds, there will be accountability involved. You might have to treat your coin as a security, you’ll have to pay taxes when you convert funds to fiat for paying people, etc. Money is…
