In Web3 — The Community is the Product-Led Growth enabler

An overview of the PLG strategies for Web 2 and Web 3

Why is Product-Led Growth important?

Web2 PLG growth, by OpenView Venture Partners

Firstly… How does Web2 do PLG?

Features & usage are primary drivers for customer acquisition, retention and expansion

1. The product markets itself and onboards new users

Tyro terminal receipt, a trigger (Top-left), Square email receipt, a trigger and action (bottom left & right)

2. Product teams synchronize with engineering, marketing and design

Up Bank (Left), Calendly (Right)
  1. Deliver value immediately
  2. Strip any non-critical functionality
  3. Make the product as sticky as possible

3. The product over-delivers value for the price

4. Network effect

And…How does Web3 do PLG?

Community, usage & incentives are primary drivers for customer acquisition, retention and expansion

The community markets the product

The community helps with onboarding

The community prioritizes the roadmap

The Constitution DAO was created to buy the US Constitution. Unsuccessful, they voted on what to do next.

The community is incentivized to build for the product

Immutable’s Snapshot.org — Decentralized voting for Developer Tools grants

The community builds the core product

The product enables the community

A thriving Web3 community = Product-Led Growth

Popular ERC-20 tokens, copied from pramodAIML
  • NFT Editions: Your blog posts can be turned into NFT’s and sold through the platform. Buyers hold on to something significant which represents the value now and potential value in the future. Think of the first blog posts by famous writers and entrepreneurs
  • Crowdfund: Mirror empowers writers and, really anyone, to crowdfund an idea through the platform in exchange for ETH. Making an expose about a niche industry? Here’s where you can raise the capital before writing
  • Split: Let’s say a project I’m working on publishes a paper through Medium — a split let’s Medium writers split the proceeds between the project team
  • Token Race: Mirror.xyz created a unique system to minimize the number of new entrants on the platform and prioritize the popular and interesting ideas. Similar to a stack overflow thread, users propose ideas and receive upvotes by other members, the top 10 users after each period receive a $WRITE token, gaining access to the Mirror platform. They now offer this as a service.
Linda Xie’s Mirror.xyz article for sale as an NFT — a great read

The network effect

For many cases in Web3, strong network effect = high liquidity

Measuring community effect on PLG

  • Twitter
  • Discord
  • Reddit
  • Blog
  • Live & Breathe the social channels
  • General: Number of Addresses, Active Addresses per day/month
  • Economy: 24 hr trading volume,
  • Governance: Number of Proposals, % of tokens voted per proposal, % wallets voted

Closing thoughts

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Writing for clarity, thought and learning

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Sam Polgar

Sam Polgar

Writing for clarity, thought and learning

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