Web3 represents the next phase of the internet, characterized by decentralization, user ownership and equitable value distribution. Like all new technologies, its success depends on addressing market needs and understanding user challenges. However, many Web3 initiatives have missed achieving a product-market fit, often adopting a “build it and they will come” approach. This mindset has been harmful, especially during market downturns. While the core principles of product-market fit (PMF) remain consistent, their application in the Web3 context has evolved.
The PMF equation is one of the hardest problems to crack in Web2 as well with most startups not making it to this stage. Most Web3 protocols have alo not shown their ability to cross the chasm of a product-market fit. This is largely due to attraction speculators rather than real users — many may not survive this brutal crypto winter. My thoughts around PMF have been formulated by applying Web2 principles learned over several years of operating SaaS companies for years with some notable successes and some failures.