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a16z Thesis

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Business Models​

Vertical Landing

Crypto Investment Thesis​

  1. Multi-sided Platform Analysis:
    • Identify the different sides of the platform (e.g., users, developers, miners/validators, investors)
    • Analyze how each side interacts with and provides value to the others
  2. Network Effects:
    • Evaluate same-side network effects (e.g., more users attracting more users)
    • Assess cross-side network effects (e.g., more developers attracting more users)
    • Analyze how network effects contribute to the protocol's defensibility
  3. Token Economics:
    • Examine the role of the native token in the ecosystem
    • Analyze how the token captures value from the network's activities
    • Evaluate the token's utility and its integration into the broader ecosystem
  4. Defensibility Mechanisms:
    • Assess the protocol's integration with other projects and services
    • Evaluate the strength of network effects and their impact on defensibility
    • Analyze the composability of the protocol with other smart contracts or applications
  5. Scalability and Performance:
    • Evaluate the protocol's ability to handle increased usage and transactions
    • Assess any layer 2 solutions or scaling mechanisms implemented
  6. Governance Model:
    • Analyze the governance structure and token holder rights
    • Evaluate the decision-making process for protocol upgrades and changes
  7. Incentive Alignment:
    • Assess how well the protocol aligns incentives among different participants
    • Evaluate the distribution of rewards and fees among stakeholders
  8. Market Positioning:
    • Analyze the protocol's unique value proposition
    • Evaluate its competitive advantage over similar protocols or traditional alternatives
  9. Adoption Strategy:
    • Assess the go-to-market strategy (E.g targeting developers vs. end-users)
    • Evaluate the protocol's brand and its importance in the target market
  10. Economic Flywheel:
    • Analyze how the protocol creates a self-reinforcing cycle of value creation and capture
    • Evaluate the sustainability of this flywheel effect
  11. Regulatory Considerations:
    • Assess any potential regulatory challenges or compliance requirements
    • Evaluate the protocol's resilience to regulatory changes
  12. Technical Architecture:
    • Analyze the underlying blockchain or layer 1 protocol (if applicable)
    • Evaluate the smart contract design and security measures

Investments​

Game Portfolio

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