Most Web3 startups promise to be “deserving of attention” or set out to “revolutionize the ecosystem.” This can be quite difficult to cut through the noise. Given the current slump in the markets for digital assets, new businesses must figure out how to fortify their business plans to cope with any market condition or transitory phase in business.
One great strategy to scale over numerous obstacles is to collaborate with startups and other local brands that have similar ambitions. Due to the focus on communities in Web3, NFT, cryptocurrency, and metaverse domains, these partnerships and collaborations are already of utmost importance. Without the need to place more emphasis, partnerships help to establish credibility with the larger sector and increase recognition among other companies, creating the groundwork for long-term success.
Introduction
Web 1.0 was static, Web 2.0 was social, and Web 3.0 will be a decentralized web. It will transition us from a world in which communities contribute but do not own or profit to one in which they can profit through collaboration. Web3 introduces the possibility of community-centered economies of scale by breaking away from traditional business models centered on benefiting large corporations. This collaborative spirit, along with the associated incentive mechanisms, is attracting some of today’s most talented and ambitious developers, enabling previously impossible projects to be realized.
Decentralized networks that are not under the control of one organization facilitate Web3 collaboration. Users of closed-source business models have faith in an organization to handle their money and provide services. Users have confidence in the technology behind open-source initiatives to complete these tasks. The larger network prevails in Web2. Whoever creates the largest network collectively wins in Web3. The idea of collective wins has increased revenue and brand exposure for most web3 brands in recent times.
For instance, a partnership between crypto exchange Binance and decentralized talent platform —Bondex, will lead to brand exposure for Bondex which can be seen in multiplied interest in Bondex’s use cases, products, and project initiatives. In addition, Bondex social media numbers can experience exponential growth due to this strategic collaboration. On the flip side, Binance will benefit from Bondex revenue sharing and trading fees when holders trade their native token using Binance exchange.
The Web3 Surge
Surojit Chatterjee, a former Google vice president who is now Coinbase’s chief product officer, and some other interested parties have joined the list of top officials in Web2 firms who are making a switch to Web3 firms. This list also includes Pravjit Tiwana, a former general manager of Amazon Edge Services who is now the chief technology officer of Gemini. This trend has been rising, suggesting that the web3 space will be thoroughly dominated and that the initial developments or projects in the ecosystem may have a better chance in the long run. Former Lyft CFO Brian Roberts did the same and began working for NFT platform OpenSea. Ryan Wyatt, the previous head of YouTube’s gaming division, was hired by Polygon Studios in June to be its CEO. Along with the former head of human resources for AirBnB, Wyatt joined Polygon.
The Web3 industry today offers a wide range of opportunities, which has increased the number of the most in-demand job titles. This figure keeps rising as new brands gain attention.
Competition Vs Collaboration
The evolution of the Web over time has resulted in a significant shift in business models or operational systems for brands. This paradigm shift has resulted in new approaches for web3 startups, shifting from a project-centered to an ecosystem-centered perspective.
In Web2, we work in a zero-sum environment where everything is a competition. It’s all about who can build the biggest network and seize the entire market share for their product or services. Monopolistic businesses and internet behemoths are well known for operating a “winner take all” model. Aggregator-distributor business models are used by centralized businesses such as Google, Amazon, Twitter, and Facebook to collect, own, analyze, and monetize user data through targeted advertising and the sale of products and services. The spirit of competition drives most web2 platforms and businesses, limiting their bandwidth and focusing their growth on their products and services.
In Web3, we work in a positive-sum environment where collaboration wins. The thought process is about “how can we build the biggest network TOGETHER”. The focus is on advancing the ecosystem rather than a single business or brand and the revenue-sharing model is distributed amongst contributors and creators. Collaboration supports the wider vision and is geared towards achieving business objectives that also include the users, the community members, partners, and the entire ecosystem at large.
Why Collaboration Is important for Web3 Brands
You don’t have to follow your startup path alone because many businesses are vying for recognition in various Web3 forums. Web3 startups are in a unique situation where they can benefit from alliances with both complementary businesses and their rivals. Collaboration with additional people increases visibility and presents opportunities to enter new communities. Digital marketplaces are, after all, nothing more than speculative markets if you don’t draw in new investors for your goods.
Collaboration is important for web3 brands because it allows for the sharing of knowledge, resources, and expertise between brands, leading to increased revenue, cost savings, and improved problem-solving capabilities. It also helps to build trust and foster a sense of community and collaboration, which can lead to more effective and innovative solutions. In addition, collaboration in web3 allows for a more diverse range of perspectives and ideas, which can lead to more creative and effective solutions. This can help web3 brands to stay competitive and relevant in a rapidly changing digital landscape.
Partnerships help you establish credibility with the larger sector and increase your name recognition among other companies, creating the groundwork for long-term success. Startups that work together benefit from an increased likelihood of success and are more likely to share resources like knowledge and expertise in exchange for creating value.
Collaboration between brands can generate significant attention for both sides, which will aid marketing. This can create the needed buzz Web3 brands thrive on, as well as alter perceptions about a startup. When a brand’s power is doubled or tripled, it stands to reason that the consumer bases of each will pay more attention. Brand cooperation is a fantastic method to change how people view your company.
How to Entice Collaboration in Web3
To entice collaboration in web3, brands can try using a combination of rewards, incentives, and transparent governance structures. Here are a few specific strategies;
Offer Rewards and Incentives
One way to encourage collaboration in web3 is to offer rewards or incentives to individuals or groups who contribute to the project. For example, to foster collaboration from a community or team perspective, you could offer a prize or financial reward to the team that comes up with the best solution to a particular problem, or you could offer a reward to the individual who contributes the most valuable content to the project. This encourages inclusion and therefore drives participation and interest.
Brand collaboration and partnership may include mutual incentives or benefits for both communities or businesses. Bondex’s recent collaboration with Unilend is one example. Unilend can lead Bondex to its market and massive talent pool, while UniLend can participate in the fast-growing crypto talent market by partnering with and supporting Bondex native tokens.
Use Transparent Governance Structures
Another way to encourage collaboration in web3 is to use transparent governance structures that allow all members of the community to have a say in the direction of the project. This could include using decentralized decision-making processes, such as voting or consensus-based approaches, to ensure that all voices are heard and considered. Utilizing DAOs is a good example of a Web3 native structure to encourage community participation.
Foster a Positive Community Atmosphere
Finally, it’s important to create a positive community atmosphere that encourages collaboration and participation. This could involve regularly engaging with the community through forums, social media, or other channels, and responding to feedback and suggestions in a timely and respectful manner. By building a supportive and inclusive community, you can create an environment where people are more likely to want to contribute and collaborate.
How Web3 Brands Can Position Themselves to Entice Collaboration
By matching their values and objectives with the tenets of the web3 movement, such as decentralization, transparency, and security, web3 brands can position themselves to foster collaboration.
Decentralization
Web3 promotes decentralization by enabling the creation of decentralized applications (dApps) and services that are not controlled by a single entity or organization. In a web3 environment, dApps and services are built on blockchain technology, which allows for the creation of decentralized networks where participants can interact and transact without the need for a central authority.
Decentralization is one of the key principles of the web3 movement and is seen as a way to increase security, transparency, and user control over data and services. In a decentralized network, data and services are distributed across many different nodes, rather than being stored on a single server or controlled by a single entity. This makes it much more difficult for a single entity to censor or control the network, and also makes the network more resilient to attacks and failures.
This concept allows for collaboration with brands to be mutually dependent, highlighting the importance of one to another.
Transparency
Because of how important transparency is to the blockchain, this is a vital value to keep in check when collaborating with other brands. When looking for potential collaborators, businesses should consider the fact that web3 encourages openness in case any are approaching with ulterior motivations. Due to the distributed and decentralized nature of blockchain ledgers, and the regulations governing decentralized autonomous organizations (DAOs), Web3 brands must be truthful with their community to successfully collaborate as well. Potential investors and partners may also want to inquire about a project’s stance on transparency in addition to owing devotion to the community that is being established. More importantly, it might serve as a neutral setting to choose and carry out some exciting Collab incentives.
Brands can also focus on building strong relationships and networks within the Web3 ecosystem and demonstrate their commitment to collaboration and open-source principles through their actions and projects.
Here are a few specific steps Web3 brands can take to position themselves for collaboration:
A Clear Vision
Develop a clear and compelling vision for how your brand fits within the web3 ecosystem, and communicate this vision to others in the community. Individual self-interests, personality quirks, and disparities in working or business methods can all be overcome by a common goal. People naturally find methods to cooperate and communicate effectively with one another to achieve desired goals when there is a strong commitment to a common vision.
Your brand vision should demonstrate your commitment to the principles of web3 by participating in open-source projects and contributing to the development of web standards and best practices. The strength of your brand’s vision is that it provides direction and clarity regarding your company’s intentions, which, when clearly expressed, can draw in other companies with similar goals.
Relationships & Networks
Build relationships and networks within the web3 community by attending conferences and events, participating in online forums and communities, and collaborating with other web3 brands on projects and initiatives. Network with other individuals and organizations that are active in the web3 space, and participate in relevant online forums and communities to stay up-to-date on the latest developments and opportunities. Consider joining or forming a web3 consortium or working group, where you can collaborate with others on projects and initiatives related to web3.
This will allow your brand to gain more visibility among others with mutual interests and objectives.
Exercise Authority
Share your knowledge and insights with others through blog posts, speaking engagements, and other forms of thought leadership to demonstrate your expertise and leadership in the web3 space. Maintaining an active presence on relevant forums such as Twitter, GitHub, Reddit, and LinkedIn, and contributing sufficiently to add value to the community. Speaking on Web3 forums, and attending meetups where your brand can connect with other brands on purpose.
These are long-term strategic activities that can improve brand visibility and credibility.
Feedbacks
Be open to collaboration and feedback from others in the web3 community, and actively seek out opportunities to work with others on projects and initiatives that align with your brand’s goals and values.
Overall, positioning your web3 brand for collaboration involves a combination of demonstrating your commitment to the principles of web3, building relationships and networks within the community, and being open to collaboration and feedback from others. By taking these steps, you can position your brand as a valuable contributor to the web3 ecosystem and attract others who are interested in collaborating with your brand.
