😨 6 key business lessons from Vitalik you forgot to apply
And KPIs and metrics to track in your web3 project
Today's Agenda...
Track web3 success by monitoring user growth, token metrics, community activity, development, and financial health with our dashboard template. 📊
Vitalik Buterin's vision for Ethereum teaches us to embrace incremental improvements, future-proof solutions, and focus on core competencies. 🚀
⏰ Reading Time: 5 min
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Measuring success in web3: KPIs and metrics to track 📊🚀
Traditional metrics often fall short. To ensure your project's success, it's crucial to track the right Key Performance Indicators (KPIs). Here’s your guide to essential KPIs, complete with a downloadable Google Sheets dashboard template. Let's dive in! 🌊
1. User Growth and Engagement 📈
Tracking user growth and engagement is fundamental for any web3 project. Key metrics:
Active Users: Daily, weekly, and monthly (DAUs, WAUs, MAUs).
User Retention Rate: The percentage of returning users.
Transaction Volume: Number of transactions on your platform.
Example: Uniswap tracks active users and transaction volume to gauge platform health and engagement.
2. Token Metrics 💰
For projects with native tokens, monitor:
Market Cap: Token price x circulating supply.
Token Distribution: Distribution among holders.
Staking Participation: Amount of tokens staked.
Example: Chainlink monitors staking :
3. Community Growth and Activity 🌐
A vibrant community is the backbone of web3 projects:
Social Media Followers: Growth on Twitter, Discord, and Telegram.
Community Engagement: Activity in community channels.
Governance Participation: Votes and proposals in your DAO.
Example: Aave tracks community engagement and governance participation to measure decentralized governance health.
4. Development Activity 💻
Development activity shows a project’s progress:
Commits: Frequency of code updates on GitHub.
Contributors: Active developers.
Issues and Pull Requests: Resolution of issues and new features.
Example: Polkadot tracks commits and contributors to highlight ongoing development.
5. Financial Metrics 💸
Financial health is crucial so focus on cash essentially. As finance guys like to repeat : '“Cash is King 👑”.
Revenue: Income from transaction fees, services, etc.
Burn Rate: Rate of spending funds.
Runway: Time left at the current burn rate.
Google Sheets Dashboard Template
To help you track these KPIs, here’s a customizable Google Sheets dashboard template. Personalize it for your project’s needs :
Conclusion
Measuring success in web3 means tracking the right KPIs. Focus on user growth, token metrics, community activity, development progress, and financial health. Use our Google Sheets dashboard template to streamline your tracking and make data-driven decisions. Happy tracking! 🎉
What we can learn from Vitalik Buterin's vision for Ethereum for our own businesses
At the Pragma London 2024 conference, Vitalik Buterin, co-founder of Ethereum, shared his comprehensive vision for the future of Ethereum and web3. His insights not only shed light on the technical advancements of the Ethereum network but also offer valuable lessons for anyone looking to innovate and grow their business. Here's a breakdown of the key takeaways and how they can be applied to your own ventures.
Our source :
1. Embrace incremental improvements
Scaling Solutions: Vitalik highlighted the significant progress in roll-up scaling with the introduction of "blobs," leading to a drastic reduction in transaction fees. This incremental approach to scaling, focusing on manageable improvements rather than overhauls, can be a lesson for businesses.
➡️Instead of aiming for massive, disruptive changes, consider implementing smaller, consistent upgrades that collectively lead to substantial improvements.
Proto-Danksharding and EIP 4844: Proto-danksharding, a key component of Ethereum's scalability strategy, introduces "blobs" of data to enhance network efficiency. This forward-compatible solution ensures smooth future upgrades.
➡️For businesses, investing in scalable and adaptable solutions can help manage growth effectively without significant disruptions.
“The biggest changes are behind us...future upgrades will be smoother and more manageable.” Vitalik Btterin
2. Future-Proof your business
Forward Compatibility: Vitalik discussed the importance of designing current solutions to be compatible with future technologies.
➡️For businesses, this means adopting systems and processes that are adaptable and resilient to technological advancements. This strategy can help your business stay relevant and competitive in a rapidly evolving market.
3. Shift focus to core competencies
Layer 1 to Layer 2 Focus: Vitalik emphasized a shift from a Layer 1 (L1) focus to a Layer 2 (L2) focus within the Ethereum ecosystem. This shift allows for greater scalability and efficiency.
➡️Similarly, businesses should identify their core competencies and delegate peripheral tasks to specialized teams or external partners. This focus on core strengths can lead to improved efficiency and innovation.
4. Simplify and optimize processes
The Verge, Purge, and Splurge: The Ethereum roadmap includes several phases aimed at simplifying and optimizing the network.
➡️Businesses can adopt a similar approach by regularly reviewing and streamlining operations, eliminating unnecessary processes, and focusing on value-adding activities. Simplification can lead to increased productivity and reduced costs.
5. Prioritize customer-centric development
Enhanced Application Development: With advancements in zero-knowledge proofs and other technologies, building scalable and privacy-preserving applications is becoming easier. Vitalik's emphasis on making tools accessible for developers highlights the importance of customer-centric development.
➡️Businesses should prioritize creating solutions that address customer needs effectively and securely.
6.Foster a collaborative ecosystem
Building a Robust Application Ecosystem: As Ethereum transitions to a more mature stage, the focus shifts from core protocol development to building a robust application ecosystem.
➡️For businesses, fostering a collaborative environment where different teams and partners can innovate and contribute to the overall ecosystem can drive growth and success. Encouraging collaboration can lead to diverse ideas and solutions that benefit the entire organization.
Conclusion
Vitalik Buterin's vision for Ethereum provides a roadmap for businesses aiming to innovate and grow in the Web3 era.
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Disclaimer : The goal of this newsletter is to inform and produce content related to management in the world of Web3. It is not investment advice. Investments in crypto-assets and NFTs are risky and can result in the loss of your entire capital. Always conduct your own research and exercise caution.
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