Market Fit - Progressive DecentralizationPmf and Progressive Decentralization

Deconstructing the Evolution of Web3 Products: The Synergistic Path of PMF Exploration and Progressive Decentralization

In recent years, countless Web3 projects have emerged amidst the booming narratives and capital frenzy, yet truly achieving product-market fit (PMF) and transitioning to sustainable autonomy remains rare. Many projects rush to “decentralize,” issuing governance tokens and establishing DAO structures, neglecting the essence of Web3: it is not merely a “skin of decentralization,” but the “skeleton of a collaborative network.”

To achieve genuinely sustainable Web3 innovation, the fine exploration of PMF and the design of a progressive decentralization pathway must advance in tandem. This article will outline the evolutionary logic of a Web3 product from 0 to 1 across these two core dimensions, helping developers and community members clarify their direction in a complex environment.


1. PMF in Web3: Not “User Preference,” but “User Participation and Collaboration”

In the traditional internet realm, PMF (Product-Market Fit) signifies that a product meets the genuine needs of users in the market. However, the “users” of Web3 products are not a single consumer end; they may simultaneously be contributors, liquidity providers, governors, validators, or even forkers of the protocol.

Three Key Signals of Web3 PMF

  1. Users are willing to bind assets or identities to your product

    • For example: staking tokens, linking wallets, minting NFTs, generating identity credentials.
  2. Users naturally transition from “consumers” to “collaborators”

    • For instance, users evolve from consumers to content contributors, code submitters, or promoters.
  3. On-chain behavior forms a positive network effect loop

    • Each new user enhances the system’s utility for all (typical examples include Uniswap and Lens).

Systematic Exploration of Web3 PMF

MethodologyImplementation MethodTool Examples
Define Seed Community ProfileIdentify the Minimum Viable Collaborative Group (MVC)X, Guild.xyz, Farcaster, Telegram
Real-time Feedback IterationBuild in Public / Open Source VersionsGitHub, Mirror, Warpcast
On-chain Data AnalysisTrack real user interaction pathsDune, Nansen, Flipside Crypto
Multi-role Motivation DesignLayered incentives for users/contributors/governorsContribution leaderboards, XP mechanisms, non-monetary incentives

Core Recommendation: Do not issue tokens before PMF is achieved, as “issuing tokens is not PMF; it is an amplifier.”


2. Progressive Decentralization: The Path from Founder-Driven to Community Self-Evolution

“Decentralization” is not the goal but a means to an end. The true objective is to create an open collaborative system that does not rely on its founders and can evolve independently.

Why “Progressive” Decentralization is Necessary

  • 🔧 Early stages require rapid decision-making and product iteration; decentralization can slow progress.
  • 🛡 Early decentralization may lead to governance being hijacked by whales or speculators.
  • 🧬 Time is needed for the community, governance mechanisms, and code security to mature gradually.

Typical Decentralization Roadmap

StagePower CenterCore ObjectiveExample Measures
Initial StageTeam-ledProduct iteration, community warmingUse Gnosis Safe for centralized control
Community CollaborationSmall-scale community governanceEstablish feedback mechanismsCommunity Beta testing, contributor incentives
Progressive GovernanceHybrid governanceDevelop governance frameworkProposals initiated via Snapshot, Discourse
Complete AutonomyDAO-ledSelf-budgeting and collaborationRelease governance tokens, open modular governance

Practical Tools

  • Governance Proposal Platforms: Snapshot, Agora, Discourse
  • Modular Treasury Governance: Gnosis Safe + Zodiac
  • Contributor Identification and Incentives: Coordinape, Charmverse
  • Task and Fund Flow Systems: Dework, Wonderverse

Example Project References

  • Optimism: Transitioning from a team foundation to a dual-house governance mechanism with Citizens’ House and Token House.
  • Gitcoin: Utilizing Grants Stack to allow community-led funding distribution.
  • Lens Protocol: Initially team-led protocol, gradually moving towards open modular governance.

3. Synergistic Strategy: The Interactive Logic of PMF Exploration and Progressive Decentralization

We propose a Dual Flywheel Model where PMF and decentralization drive each other forward iteratively:

PMF → Contributor Growth → Governance Readiness → Community Ownership → Product Innovation.

At key moments, project leaders must make strategic choices:

Once PMF is emerging: Launch limited contributor programs (bounties, grants, NFTs).

As community matures: Introduce governance pilots (small budget votes, test proposals).

When protocol stabilizes: Launch token-based governance with safeguards.


4. Why This Approach is Better?

DimensionBenefits of Progressive Strategy
Product DesignAvoid being “governance-captured,” retaining rapid iteration capability
SecurityPrevent early token governance from being attacked or hijacked
Community DevelopmentEnhance participation and sense of belonging, making users “co-builders”
Financing LogicMore appealing to long-term funds, with clear growth and governance blueprints
SustainabilityBuild a resilient system, resistant to “founder-centric dependence”

5. Conclusion: Redefining the Web3 Entrepreneurial Roadmap

We must abandon the hollow Web3 entrepreneurial model of “issue tokens first, then see the community,” and return to the essence of users and collaboration.

Future Web3 projects should:

Evolve from singular technological breakthroughs → Collaborative network design → Public goods system construction → Decentralized economy evolution.

Decentralization is not the outcome but a pathway of evolution. Product-market fit is not merely about user growth, but whether the collaborative ecosystem can self-evolve.

The starting point of all this is: Find your Minimum Viable Collaborative Community and build the future together with them.