Over the last few years, much was written about how Web 3.0 is going to change things. This is a transition that I see entering us into the "Age of Abundance".
Our present system is built upon the idea of scarcity. We primarily operate in a physical world where atoms are limited. Thus, we see a natural scarcity due to the resources available.
This changes somewhat when we enter the digital world. Now, instead of atoms, we are dealing with bits. They travel much faster and quickly move us away from the scarcity model. The ability to scale up in number is exponential when compared to the world of atoms.
An issue is the fact that while the digital brings a natural abundance, the way it is structured brings back the same old scarcity. Essentially, the few companies in control of the major platforms have develop a model that benefits only a few while the masses are left with little to nothing.
It is a model that is already starting to crack and we are seeing the early stages of Web 3.0 unfolding.
Uniswap made great headlines this week with its airdrop of the UNI token. Anyone who utilized that application received 400 UNI tokens. Keep in mind, these are governance tokens, designed to provide individuals with the future of the network. Nevertheless, as of this moment, the 400 UNI token are worth over $2,800.
This is a healthy sum to receive in an airdrop. Of course, depending upon where one resides, this could be an incredible amount of money. Yet, in a total surprise, people woke up one day and saw they were eligible for the tokens.
Why did Uniswap do this?
The exact details were never released in full. We can surmise that this was done in response to the moves Sushiswap made a few weeks prior. This fork of the Uniswap software was able to garner a great deal of attention, and liquidity pool money, by offering its own token out to those who provided tokens for liquidity to that network. Estimates are that 80% of the liquidity was moved.
Here is where we see the abundance in action. This epitomizes what Web 3.0 is going to look like. Just for a second, picture this happening on a daily basis.
A key component of Web 3.0 is the move away from a focus upon the platform to one on the users. Presently, the users provide all the data and the platforms are the ones who receive the majority of the monetary benefit. Web 3.0 is going to be the exact opposite. Thus, developers in that realm are going to have to spend time brainstorming of how to reward users. This is in direct contrast where platforms are always coming up with ways to leverage the value that users provide for their own benefit.
Uniswap and Sushiswap are just two applications out there. Imagine this applying to move that we come across. For example, consider the idea of web browsers. Will people be comfortable using a "free" browser when others are out there offering rewards? Also, if we take this to another level, picture the innovation if two browser teams are continually enhancing the rewards offered to those using their browser.
It is easy to see who benefits.
Yield-farming is the rage right now. Many compare it to the ICO boom of a couple years ago. There is a chance that this is slightly different.
What we see in the world of DeFi could be laying the new foundation for the digital realm. Every platform might be confronted with the need to "out do" its rivals. After all, we are dealing with one of the most scarce items, individual attention.
If a platform wants users' attention, they will have to generate a reward system where users are drawn to them. Those that fail to do so will end up lagging behind.
This takes on new meaning if we see the trend towards open source software continue. Uniswap is open source meaning anyone can fork it. Over the last month, a number of ventures popped up that really were nothing more than a repackaged version of Uniswap. As Sushiswap showed, it isn't so much the difference in the software that matters. Instead, it is the incentives users receive.
Of course, financial abundance is just one area of life. In totality, more money being spread around does not translate into a better world. In fact, the way some behave, it ends up unfolding in the opposite manner.
However, we live in a highly technological era. We see many different technologies rolling out that have the ability to transform how society operates. Areas such as construction, food production, and energy are all seeing radical changes. Some of these will result in a better system of production and, hopefully, consumption.
That said, money is drives the proverbial horse. Research, development, and investing are all required for technological advancement. Expanding the resources available for these purposes will only increase the pace that we can move forward.
We already saw this transformation in the fields of information, communication, music, and video. Companies that depended upon the scarcity model saw their businesses disrupted as abundance was ushered in.
Over the next decade, we will see similar things in food, energy, transportation, and healthcare. Technological tokenization will only increase the pace of innovation that we see.
From this perspective, the $2,800 from Uniswap is just the beginning. The next decade will likely see something like this becoming the norm.
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