Alert of unpopular opinions and headaches: Persisting the symptoms, look for Web2.
images: midjourney | depositphotos
Brief:
Who they are, how they live, what they feed on and what are the demands in the life of those who are in the building at the dawn of Web3 in Brazil.
In mid-2022, I decided to dip my toes into Web3 in a scenario that, in today's eyes, was paradise. After two years of a frenzied bull run, the crypto market was showing signs of exhaustion but still seemed interesting enough to start an NFT project.
And it was.
I had a sea of doubts, just like you when you arrived.
I heard amazing testimonials and perspectives, but I wondered:
"Hold on, is this for real or just something crazy people do?"
After 12 months, we found out it was indeed all real and done by crazy people.
We've just experienced a "Week of Wreckage" with the NFT market in turmoil, where BAYCs bought for 150ETH (half a million dollars at that time) were now being sold for 40ETH (75,000 USD). Meanwhile, more and more companies and governments are embracing the crypto universe, either through decentralized projects or by creating their own digital currencies.
But I'll leave the analysis of circumstances to the experts.
I'll take this opportunity to share with you some personal impressions from the "building floor" of the Brazilian Web3. At the dawn of this era, celebrating the brilliant moments, and pointing out some course adjustments we may face soon.
1. Web3 does not have a Specialist, nor is it for Beginners:
The Cultural and Technological Revolution of Web3 is a sea of new perspectives, but sometimes we dive headfirst and end up face-planting in a puddle, thinking it's a lake.
The possibilities are real, but the transformation is still in its early stages.
Moreover, while Web3 warmly embraces newcomers, it brutally punishes those who make mistakes:
Sold something through DM? You'll never see the color of that money. Clicked on the wrong link? Your wallet gets drained without a second thought. Didn't achieve a quick mint out at launch? Your project is considered a failure.
Surprised? Many people give up at the door and never enter.
But there are more diamonds than stones on this path, believe me.
In such a landscape, however, it's useless wasting time complaining.
Like in any revolution, those who venture into it must choose carefully which front to fight on, and the ground they step on. So, celebrate your achievements and take responsibility for your mistakes.
In practice, it's much harder than it seems - be kind to yourself - but the discoveries we make along the way are incredible. We truly feel like we're "sending the first emails" in a world where soon people will have video calls with anyone around the globe. It's fascinating, but it comes with a price.
2. We still don't know what VALUE means on Web3:
When we sell smartphones, we know what creates value:
Big screen;
Long-lasting battery;
Amazing camera;
Low price for those looking for a solution;
Insanely high price for those who want to show off.
But in Web3, that doesn't exist. At least not yet.
What is truly important for Web3 people, to the point they are willing to pay for having ou seeing it happen?
Honestly? We don't know.
There are plenty of "Monday morning quarterbacks" on the space pointing out the mistakes of projects that failed because they DIDN'T ADD VALUE. But if we ask WHAT IS VALUE, we get clichés and no compelling answers.
Is a Strong Community an important asset? Yes.
But projects with no community at all become global hits while others with strongly structured communities fail.
"What explains that?"
Anyone who hasn't asked themselves that question hasn't truly experienced Web3. 😄
Building something in such a volatile landscape is challenging, you know? Nevertheless, many people take the risk. Heroes, in my opinion - or absolute irresponsibles in some cases.
Either way, we are making progress, and at some point, we will establish values for this universe thanks to the mad ones who take risks today.
3. NFTs are Dead (at least as it was).
Read this first and kill me later.
NFTs started as symbols of an era. Keys to digital communities where people from all over the world, with similar values and desires, gathered to enjoy life and conquer the world. A version of Paradise - it's in the scriptures.
During the bull market, they became overvalued and created bubbles that made A LOT of people VERY rich. This attracted people who cared more about money than NFTs, and from there, these assets spiraled into a realm of pure digital speculation.
Values such as Art, Utility, and even Creator Royalties were abandoned, leading to the death of the NFT Movement as we knew it. Many pointed out these problems, but we ignored the consequences. To make matters worse, in a sort of "perfect storm," the bear market drained the market's liquidity to alarming levels.
Nowadays, people barely discuss what an NFT project can or can't do; they only talk about its volatility in trading. Meanwhile, some people lie in wait for the new bull run to cash in incredible profits and, just like their "ancestors," become rich forever. - "Why not?"
From this perspective, it's not wrong to say that the NFT market, driven by its philosophical purpose and community engagement, has come to an end, right?
Can it change? Of course! And it should.
Giants like Yuga Labs, Azuki, and Doodles were born during this period. They are heavily capitalized, and developing incredible proposals in gaming, animation, intellectual property, metaverse, and more. Promises and potentials, are not yet fully established as successful models.
But when they are launched, we will undoubtedly witness a new version of the NFT Movement taking shape.
Perhaps even more powerful. It's worth checking out.
4. The Spaces rock!
Folks, a DELICIOUS way of communicating was born here and will likely take on new formats in the coming years. Twitter Spaces are democratic, and that's why they have found a perfect match with the Web3 communities. Anyone can listen for free, leave a written question, or hop on stage and have a conversation.
Uniquely, we join people with incredible experiences, far from the formality of the business world, every single day. As Casta (@castacrypto) says, it's something very similar to the meetings in basements and taverns where revolutions and artistic movements were born in the past.
A Special Timing
Unlike YouTube videos or Instagram Reels, we don't have to be tied to the screen to watch a Space. The result is a combination of convenience and lightness that allows users to follow a single live episode for up to three hours while coming home from work, taking a shower, taking out the trash, and preparing dinner. As a branding tool, culture builder, and audience loyalty enhancer, this is EXTREMELY POWERFUL.
However, the Brazilian Web3 audience is still in its early stages within these environments. Spaces about reality shows attract 1,600 live listeners. Political debates gather 500 people live. On the other hand, Web3 Spaces in Brazil gather only 20 to 50 live participants, with occasional peaks of 80 to 100.
The Key Authenticity
The true essence of Spaces lies in their "innate authenticity." That frankness that's typical of talks with friends, similar to what YouTube was in its early days, and in stark contrast to the superficiality idealized in Instagram stories. Thanks to this, Spaces allow us to build strong relationships and exchange genuine experiences like no other channel.
Some say we have "Nutella Web3" in Instagram Lives and the real deal in Twitter Spaces. And the arrival of Threads might change everything.
Give it a try and draw your conclusions.
5. The Myth of the Web3 Collectivism.
When we enter Web3, we're presented with such an idyllic discourse about freedom, equality, and fraternity that even the less skeptical among us start to wonder:
"This seems too good to be true..."
And it is.
In practice, Web3 promises a Great Revolution that is still taking shape but hasn't fully materialized.
The desire for decentralization and a more egalitarian digital society is sincere, but those who are building it come from a centralized world. It's natural to find discourse in favor of collectivism but individualistic practices. And since people don't change overnight, we'll need time - and a lot of effort - to truly transform something.
Just open Twitter and see for yourself: Except for a few exceptions, we see people obsessed with COMING FIRST, trying to make it seem like it's a COMING TOGETHER. Right? In summary, people will help you, but "if the flour is scarce, I come first." And in a bear market, the flour is minimal.
We also have the Accessibility Paradox of NFTs: Web3 preaches decentralization, collectivism, and equality, but what is being built in its name is based on restricted access and exclusive privileges, through tokens that cost more than your house, dividing the world between those who "can" and those who "can't."
Those who can, flaunt their luxury PFPs on Twitter.
Those who can't, watch from the sidelines and improvise in their way.
It's very similar to the arrival of TVs in Brazil in the 1970s when those who "could" watched with their families in the living room while the neighbors crowded around the window outside to see - for the first time in their lives - a goal by Pelé.
In this sense, we haven't been that original, right? 🧐
But we still have the potential to be.
Try not to judge; it's pure human nature in the law of the wild market.
Be gentle, but careful about what you choose to believe.
6. The Pains of Decentralization.
I haven't had many experiences in this area, but I've learned a lot from those who have.
DAOs are the cream of the crop in terms of collective achievement within Web3, and also one of the most difficult dreams to fully realize.
The power of audience mobilization achieved by successful DAOs is something I've rarely seen in life. As an example, the reach of Nouns DAO across various universes and the genuine engagement with its purpose and actions - as shown in the video below - is something that even Apple fans don't do for their beloved fruit.
The sense of belonging is transformed into actionable power through tokens in a fascinating form of digital cooperatives we hadn't seen before.
Mucho Love showcases various accomplishments of Nouns DAO and its communities worldwide.
And however, like traditional cooperatives, DAOs suffer from similar pains:
Whales
When a few people hold many tokens, power becomes concentrated in their hands. So decentralization becomes a myth, with these "whales" dictating the course of things in their way.
Corrupted Politics
Where there is accumulated power, there is also politics. And politics without rules leads to corruption.
This is one of the most important lessons that DAOs have taught us: " Web3 is not immune to corruption."
In theory, we could approve a USD 100,000 overpriced project in a DAO with the support of corrupt influencers. We spend 20,000 on executing the task and split the rest among the scammers. The circus is formed...
The transparency of the blockchain is masked by the anonymity of Wallets. The criminal could be sitting next to you at a restaurant, without anyone knowing. It's challenging to regulate these relationships in decentralized settings.
Inefficiency
Just because a person has a token doesn't mean they know what they're doing. So misguided decisions accumulate in the hands of managers with strong ideologies but little experience.
Unlike the previous pains, there is no malicious intent here, you know? It's good people trying their best, but they haven't figured out how yet.
For example, Rug Radio is a radio station where the listeners themselves - holders - decide the programming. However, there are many complaints that the programming sucks. 😆
It's a paradox since the audience itself chooses what goes on the air, right?
Perhaps the expertise of specialists isn't so dispensable in organized management. That's why proposals for partially decentralized management gain traction.
We will discover the answers thanks to the warriors who are venturing into the sea today. #respect
7. Web3 Communities: From the Tenement to the Resort
Digital communities are one of the fundamental pillars of Web3. And they come in all shapes and sizes. From airing dirty laundry in public because "I caught him with a shitty lover" - When I spread myself, nobody gathers me - to the club of socialites who idolize the shenanigans of billionaires with another alpha call in their hands.
Let's confess, we LOVE it.
A community is a group of people with shared interests and values, their own rituals, language, quirks, and goals that make them stronger together than individually. It's in these "Roman forums" of the digital era that we witness Web3 taking shape live.
Valuable knowledge and fun are the essence of communities, where people genuinely help each other, like true digital fraternities. But there's still much room for improvement.
Structurally, most communities struggle with money. Finding sustainable business models for communities is challenging.
In some cases, we replicate Web2 patterns, just with a fancier name, like communities where a single person decides what the audience will see or not.
Well, for that we already had influencers with their followers on Instagram and YouTube, right? No need for Web3... By the way, calling Instagram followers Web2 communities is one of the most common mistakes.
There are also complaints about cliques within communities.
It's bad and yes, they exist. But honestly, cliques are pure human nature. Fighting them is as important as it is ungrateful. If I could give you one piece of advice, it would be:
Develop the ability to be part of the cliques that suit you, stay away from the ones that won't help you, and you'll have developed one of the most valuable skills in your life.
The most important caution, however, applies to communities both within and outside Web3:
Communities are constantly creating culture and shaping values, and when their members carry some kind of emotional vulnerability, they become more susceptible to MANIPULATION.
The ecosystem is filled with exceptional people in their purposes and values. But the fact that someone is famous or has a very expensive NFT in their wallet doesn't mean they know what they're talking about. And many things sound beautiful when said but dangerous in the ears of the listeners.
Choose your idols wisely.
8. Storytelling is more powerful than we realize
I've always been interested in storytelling, especially in branding, but I only started studying it thoroughly when creating Rio Frenz.
And it's incredible how powerful and underrated it is.
Everything we know, and everything we believe, reaches us and is transformed every day through stories. Your beliefs about your profession, marriage, money, love, or happiness all originated from stories that you chose to believe. That's why it's easier to change the world by touching people's hearts than by shouting on the internet every day.
However, in practice, storytelling is not a tangible concept for those who are building. The feeling is that "telling stories doesn't pay the bills," so the tool is left aside.
A mistake, in my opinion.
People are in Spaces every day, telling stories about what's important to them. And those stories plant seeds that will flourish in the future.
Perhaps the mistake lies in choosing the RIGHT STORIES.
Everyone loves to buy but hates the sales pitch. If the stories you tell are about how amazing your project is, people switch to "here comes the merchandising" mode and disconnect.
It's the PEOPLE who want to be AMAZING. To strike the right chord, we need to discover the story they tell themselves when they choose to use our product and give wings and ammunition to that feeling.
PEOPLE are the PROTAGONISTS of their own stories, not you.
9. God hates NFTs.
When I saw the first haters protesting at the doorstep of NFT NYC, it didn't seem so serious. But when you're in the trenches building Web3, things get hard.
The term "NFT" itself has become synonymous with scams or with "idiots buying digital stickers" in the eyes of the general public.
It's challenging to create in such an environment.
In the post below, renowned animation studio Golden Wolf announces its acquisition by Doodles.
For the Web3 audience, it's a milestone for the birth of an amazing IP - Intellectual Propertiy.
For the animation community, it's the "death of the studio" - click on "Read Replies" and see.
This accumulated resentment, fueled even by the CEO of a renowned Brazilian studio, deeply impacted me. Especially because the animation tribe is one of the most chill groups out there.
Looking for ways to reverse this rejection among Web2 users, I found the stigma:
"The artists' work has turned into fuel for scams and financial speculation."
Talking to Web3 insiders, I found denial:
"People don't recognize Web3, and they're outdated."
Honestly, we won't get far by arguing in these terms. To overcome these barriers, we need to see the world through the eyes of those who don't like Web3 and ask ourselves:
"Why are they right to disagree with us?"
It's not about being right or wrong, but about understanding the perception of the audience. By understanding people's hearts and finding where our desires align, we can understand their fears, revise our positions, and - in their language, not ours - present the values that this cultural revolution offers.
If that makes sense to these people, it will be beautiful.
Otherwise, there's nothing to be done.
The Web3 folks who preach freedom on Twitter need to respect the freedom of those who don't like it in real life. Let's continue with the work that falls upon us, and believe me: our paths will cross again down the road.
Surely, under better circumstances.
10. Web2.5 is the future
Closing our list, we have a classic you'll hear sooner or later:
"Ah... but that's no longer Web3."
When that happens, you might be on the right track.
Sometimes, the Web3 community has a kind of fundamentalist behavior where only pure-blood blockchain is valid, and everything else is seen as a corruption of the philosophy.
Well, we've lived long enough to know where fundamentalism usually leads us, right?
That's why I believe in a future of great mixtures.
We have many fascinating technologies that are widely established and can and should be seen as valid solutions in Web3. Giving them up for the sake of ideology seems foolish to me.
Our medical records in the Brazilian Unified Health System (SUS) have been running on the blockchain for 6 years. We check our vaccination information on Web2 apps on our smartphones without realizing the connection.
I believe that this transition with parallel technologies is the key to our success, not something to be fought against. In the end, when our humanity surpasses the tools and connects people to the point where they no longer notice the technologies, we will have achieved a valuable accomplishment.
Calm down, the future hasn't started yet. But people are working for this.
Finally, my friends, it is worth remembering that Web3 is a great promise of a future that shows strong signs of transformation but has not yet begun. It takes shape in the minds and hearts of various agents who gather in Spaces every night and work towards their ideals during the day.
And the courage of the people working on the frontlines today is admirable. 👏🏼👏🏼👏🏼
Web3 enthusiasts face various forms of discrimination - open or subtle - from the productive sector and the general public. We encounter barriers of technology, behavior, ideologies, and cognition. This may seem negative to those who observe from the outside and point out flaws. But for those who are inside, this is raw material!
Rev up your engines and slather on sunscreen because the sky is not the limit for what lies ahead of us.
Find out more about Rio Frenz
Get to know us at www.RioFrenz.com.
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