Original Author: Jerry, Cherry, BeeGee

If the Builder economy is placed at the height of the evolution of human civilization, it will bring about the basis for the transformation of the economic system: clan and tribe (small country with few people, common labor, common distribution), farming civilization (slave owners, monarchs and religion), industrial and commercial civilization ( Capital and politicians), technology/information civilization (technology, capital and politicians), digital civilization (user Builder co-construction and sharing in the blockchain/Web3 era), interstellar civilization (unknown)...

We have the opportunity to write a new narrative chapter for human beings "until civilization" with "blockchain/Web3 distributed/decentralized, Token incentive mechanism/Builder economy, smart contract/DAO organizational governance structure", and it can even be coherent Sexually look forward to the interstellar civilization after the digital civilization (human beings will have the ability to chase the stars and seas only after they have completed digital advancement).

In the historical view of the advancement of human civilization, the evolution of civilization is driven by the adaptation and transformation of the environment by the survivors. Then, in the era of digital civilization, the iteration of individual survival paradigm/labor value and the entire ecological economic structure/production relationship will be of decisive significance. We should first enter into the construction of Web3 infrastructure based on how Builder users play a spontaneous construction role based on interests and expertise in the digital civilization/Web3 ecology, and obtain corresponding status and value returns with their contributions.

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1. Iteration

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1.1 Changes in the universal survival paradigm

In an iterative context, our best comparative effect is the content creator economy. Content creators/Builders in the Web2 era can earn income by doing what they like, and promote the content business realization model of the creator economy, but this is not enough to promote the iteration of the economic structure, and it is not enough to create content for the entire ecology Creators/Builders offer an opportunity to survive a paradigm shift, as there are only limited revenue opportunities available here - only the top 1% of creators with a large number of followers and reads can run a sustainable business. For example, 1.4% of Spotify’s musicians account for 90% of revenue; more than half of Twitch’s revenue goes to the top 1% of anchors.

More importantly, it is still an economic relationship in which centralized institutions exploit/harvest labor—the centralized platform in the Web2 era takes most of the economic value contributed by content creators/Builders. For example, record labels and streaming platforms have an almost complete monopoly on market share and content product distribution rights, and a typical music artist can only earn about 10% of licensing royalties.

According to Linktree report data, 35% of content creators in the Web2 era are not able to make ends meet, and 59% have not realized content monetization at all. Watashi, the founder of SafeTreasury, has nearly ten years of experience in product design and management in the Web2 era and has devoted himself to the project practice and community building of the NFT trading market. He believes that Web3 is deriving the content creator economy in the Internet age into a kind of laborer/Builder Paradigms of survival in the age of digital civilization.

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Source: Nansen.ai

Watashi believes that this mainly depends on the blockchain/Web 3 providing users with low-cost creation value and high-efficiency asset circulation/transaction. For example, the number of active wallets participating in the native token SLP is used as a proxy for the number of Axie users, which at its peak was close to 1 million. Most of these users do not need to master technology and programming language to understand and use complex financial infrastructure, but when they can complete the payment through SLP within a few minutes, PLAy 2 Earn is exploring the way in the iterative process of digital civilization Web 3 Laborer/ Builder's survival paradigm.

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1.2 Iteration of organizational management forms

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1.3 The Necessity of Community Quantification Mechanism

The founding team of SafeTreasury believes that service contributors should trace the historical data of each contributor. This corresponds to the quantification mechanism and the rights and permissions behind it. Smart contracts and blockchain have brought the Internet into the era of ownership. The contributions owned by users can be directly used for the calculation of users' rights and interests. In the builder economy, the value of builder contributions is related to the incentives obtained by builders.

To complete a quantitative mechanism suitable for the current community, the community needs to do the following:

The rights and interests of the builder are not determined by the platform, but by the Builder and the community based on objective facts and community positioning.

The community itself has a clear positioning and vision, and measures user contributions with effective and lasting metrics.

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2. Path

Looking at the economic system in the context of technology, product and application iteration, comparing the points/equipment incentives of Web 2 applications and the Token/token incentives of Web 3 applications, the points/equipment of Web 2 applications can only be circulated within isolated applications And consumption, there is no economic mechanism for investment, consumption and transaction within the application ecology. The contribution/data/assets of Web 3 application users belong to the Builder user DID in the form of asset confirmation such as Token/NFT, and can be circulated across protocols and applications. On the basis of consumption/payment/transaction scenarios, it also has investment / The financial function of arbitrage.

Each Web 3 application is an independent "small country" with a closed-loop economic system, and the Token/token issued by it is the "currency" that the application/"small country" economic system operates. Therefore, there must be a singularity at the macro level. There are enough applications/"small countries" in the entire Web 3 ecosystem to operate freely. Builder users devote themselves to Web 3 ecological co-construction and sharing, and to support the non-competitive economic ecosystem of digital civilization "small country with few people, mutual benefit and win-win".

However, from a microscopic point of view, especially in the early stages of Web 3 ecological co-construction, a non-competitive economic ecosystem will not be formed spontaneously. On the contrary, there is no "national border"/boundary between applications in the Web 3 world. Builder User DID can be active in multiple competing Web 3 applications, so each Web 3 application needs to grab more Builder users to participate in the ecological co-construction of its own project.

The founding team of SafeTreasury believes that Web 3 applications need to consider how to better motivate Builder users to participate in more lasting and in-depth collaboration and ecological sharing when their own Token/token incentive mechanism does not yet have a closed-loop economic system/Builder user transactions to survive. establish. Compared with the one-step "full project token" incentive, the combination of "project token + stable currency + legal currency" will be a better way. The value of a project token is 0 at the initial stage, and only relying on the joint efforts of the builder can the value be continuously consolidated and pushed up. After all, builders are human beings, and they also have realistic needs in the current environment. To do this, an eclectic and flexible approach is needed to incentivize contributors. When the value of the project itself is established and the business flywheel starts to run, then it can gradually switch to the "full project token" incentive, thus forming a self-closed-loop on-chain ecology.

Token incentives are roughly divided into two types: Commitment compensation is more like a formal job. A certain amount of time is invested in the work of DAO every week. The specific work is continuous and is continuously arranged according to the needs of the organization. It is a requirement for individuals to produce specific results within a fixed time; Retroactive Compensation corresponds to temporary job assignments, corresponding to clear work results, usually tasks that can be completed in the short to medium term and are easy to quantify.

Compared with the traditional equity incentive mechanism, the incentive work in the form of tokens has the following advantages:

1. High asset liquidity and short time-to-market (no need to wait for an acquisition or IPO)

2. Auto-match market compensation (startup equity value tied to company value at last fundraising round)

3. Rewards are more directly related to the company's technical products and community value, and are not subject to the company's capital structure

4. Compensate for loss of employee benefits due to extrinsic factors in different ways (capital gains, payroll taxes and local regulations)

5. Obtain basic liquidity from the lending market without triggering taxable events

6. Staking, lending and earning incentives for additional tokens

7. The token dilution process is transparent. Coordinate feasible scenarios for the total token supply with stakeholders in a transparent manner.

Incentives (and pros and cons) in the web 3 community include:

1. Retroactive bounties (funds/tokens), given retroactively to contributors after they contribute (flexibility for DAOs, no long-term commitments, but high uncertainty for contributors);

2. Salary stream (funds/tokens) (could encourage long-term, steady contributions, but not for specific jobs)

3. Collective rewards (funds/tokens), which collectively evaluate the rewards that individual contributors deserve (there is a decentralized collective evaluation mechanism, but it makes individuals more uncertain about the rewards they get)

4. Governance rights/tokens (to give members a better sense of participation, but the value of governance tokens generally fluctuates greatly)

5. Tips (funds/tokens), directly allocated by the central organization (contributors can be rewarded the fastest, but very centralized, and the income may be uncertain);

6. Bounty (funds/tokens) (good for some special tasks, but it is difficult to supervise the completion of the task correctly)

7. Donations (suitable for incubating complex plans/projects within a DAO, also difficult to test the effect)

8. NFT (can be used for tickets, build a reputation system, but limited liquidity)

9. SBT (SBT can become a personal reputation certificate, combined with DID to become a resume in the web 3 world)

While ensuring the incentive mechanism, this incentive system also tries to solve a very real problem in the early stage of Web 3 ecological co-construction - some excellent Builder users do not have other full-time/commission jobs in the real world. How does the application take into account its real survival on the basis of the Token incentive mechanism. For example, a Builder user of ThePrimediaDAO participated in co-research, co-creation and collaboration for more than three times within a month, and the contribution was approximately equal to two independent content investment research and analysis articles. The full-time status participates in co-research and co-creation, so in order to better play its role, an incentive bounty of 600 U-1000 U funds is given to it, which not only ensures its survival in the real economic world.

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3. Value

In the long history of human evolution, the formation of each civilization era is a manifestation of the adaptation of the human social order to the changes in the external environment/survival structure. Digital civilization is no exception. Human nature is complex. The laws of the real world are the bottom line of human morality and regulate human social behavior. In the web 3 world, smart contracts regulate the behavior of builders and ensure the normal operation of community governance.

The internal coordination and governance of the community requires the common values ​​and goals of the members, and the constitution (smart contract) is the interface of the common values. The main form and structure of the existing DAO constitution: modeled on the concept of the modern constitution, defining powers and responsibilities through clauses; imitating the declaration, expressing values ​​and guidelines to be followed; applying the digital constitution of the community and the Web 3 project, to the mentioned goals, values ​​and Rights are encoded. This is called computational constitutionalism, where communities are defined by their use of smart contracts.

The constitution acts as a product of decentralization in the community, and decentralization also defines a specific narrative of how the community collaborates. Mainly reflected in: the right to propose, the right to challenge the proposal, the right to vote, the right to non-discrimination and the right to withdraw. The constitution defines the goals and values ​​of the community. Goals are broadly grouped into: developing Web 3 specific technologies; disseminating technology to benefit the world; building community. The values ​​expressed are: openness, tolerance, free and decentralization.

The SafeTreasury founding team believes that under reasonable decentralized governance rules, early Builders and contributors can obtain part of the value they help the platform create, and ultimately govern and control it more. Essentially handing these companies over to the Builders - this is the biggest socio-social shift that decentralization has created here.

We can imagine that in the process of digital civilization based on the iteration of Web 3 applications, this is a new paradigm of living structure, a little more equal and a little more socialist, which allows every Builder to participate in the economy that is happening in the world Create and share, and have corresponding social governance rights and interests based on their contribution, instead of restricting it to a few people such as capital/technology/politicians. Therefore, Web 3 applications will greatly release human creativity. While completing the evolution of digital civilization, human beings can also start to imagine interstellar civilization...

Remarks 1. This article was co-created and co-created by TheprimediaDAO. The main collaborators include TheprimediaDAO initiator Jerry (@ThePrimedia) and TheprimediaDAO Builder, Open Knowledge DAO core-builder Cherry (@cherry_yang_cn), TheprimediaDAO Builder, TigerVCDAO Investment Head BeeGee (@BeeGeeETH) contributed to this article.

Remark 2. This article is the second part of "Back to Topic Web 3 Technology and Industry Integration", which belongs to the TwitterSpace "Looking for the Next Bull Market" theme series planned by TheprimediaDAO. The participants in the salon discussion include Dyson, the consultant of TheprimediaDAO, Peter, the founder of TigerVCDAO, NonceGeekDAOFounder Li Dagou; Co-founder of CrossSpace and Type V DAO leonin web 3; Assure_pro Chief Growth Officer, Assure Wallet developer Terry