The App Store Model Comes to Web3
Heidi Fin via Unsplash

The App Store Model Comes to Web3

Six months ago, I wrote about how the?cap tables of crypto companies have approached the structure of web2 startups. Recently,?EVMOS, a web3 project, pushed forward an important innovation for the web3 ecosystem. EVMOS enables Ethereum’s virtual machine on the Cosmos chain.

The EVMOS token model?innovates on its predecessors by introducing the App Store dynamics to web3. In Apple’s app store, users pay Apple to access apps and developers receive a revenue share. This doesn’t happen today in web3. Except on EVMOS.

When users pay gas fees (transaction fees) to use EVMOS, 50% accrue to developers building applications. The other 50% rewards validators. Governance token holders may vote to change the 50/50 split in the future.

Gas sharing rewards developers for writing popular applications on EVMOS. Developer evangelism underpins healthy L1 chains: without applications, the underlying database of much value, no matter how sophisticated the technology. A stadium without entertainment sells no tickets.

Historically, web3 companies have paid developers fees from their treasuries or dedicated ecosystem funds to build applications atop chains. While this technique may achieve the same results initially, developers may not stick around after the check hits the bank (or the tokens appear in their wallet). The EVMOS model better aligns current and future incentives of the L1 and the developers. In addition, ecosystem development is no longer a series of one-time expenses for the treasury, but an ongoing shared cost.

To make the math work, the EVMOS token model reduces initial community ownership to 10%, which furthers the?compressive trend observed late last year.

The EVMOS token model may be one of the most influential innovations in web3 developer relations in a long time. After all, this concept has dominated the mobile app ecosystem and powered Apple and Google’s multi-billion dollar revenue streams from app stores.

Web3 finds itself at a moment where the innovations in infrastructure have outpaced those in applications. To attract the next billion users to web3,?the great pendulum of technology progress?must swing towards applications. The EVMOS app store model might be the insight to compel tens of thousands more developers to swallow the web3 red pill.



Porendra Pratap

Bachelor of Commerce - BCom from Nizam College at Hyderabad Public School

3 年

??

Arlo Gilbert

CEO at Osano | Leading Data Privacy | Do the Right Thing.

3 年

Not just that developers must build apps, but developers must build apps that are *better* than what users get today in some way, they must figure out how to market the apps, retain users, and solve all of the problems that every other business must solve. Want to find love? Use Cryptodate (c), there are 200 users, all have mysterious ape profile photos because they are so privacy-conscious (or are apes just the new shirtless photo?), the app is slower, you can't install the app on your device, and you have to learn how to code to buy tokens to use it. Oh... and half of the users on there are just catfishing to get other users to buy their next NiftyToken because they know that once you get your "money" in this libertarian utopia, you can't get it back. The fact that we are what, 10+ years into crypto and there is not ONE single application other than speculation and "store of value" doesn't bode well for the ecosystem. Kevin Costner might have been right in Field of Dreams that "If you build it they will come" - but surely as a VC you know better than most that just building something doesn't cause people to adopt it.

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Kamal Ganwani

Digital Marketing | Cyber Security | Data Science & Analytics | Artificial Intelligence

3 年

nice and very informational article.

Pamela Vitale

Seasoned Creative Professional, Writer, Artist

3 年

Interesting ??

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