Ep. 5 - Network Bonding Theory (NFX Masterclass)
In this episode, James Currier delves into 'Network Bonding Theory'. He elucidates how to make implicit network calculations explicit, discusses declining equity distribution in startups, and the future of calculating node value. He explores the role of fungible tokens in enhancing network nodes and the shift to tokens and NFTs. Lastly, he discusses the vulnerability of networks and the importance of understanding and measuring nodes for company development.
Key Points
- Network bonding theory is essential for startups as it shifts focus from software development to community building by bonding people and assets to the network using a mathematical approach.
- Compensation strategies for network participants are evolving, incorporating not just traditional methods like equity and cash but also innovative ones like fungible tokens and NFTs, which reflect the value participants bring to the network.
- The future of competitive startups will involve network-on-network warfare, where understanding, measuring, and strategically compensating the most valuable nodes can defend against or enable attacks on other networks.
Realize that your startup itself is a network. Your goal is to bond people to it. When you attach, or bond, one node to your network, it adds value to all the other nodes.
This is episode 5, from the NFX Masterclass, covering Network Bonding Theory. Learn best practices for bonding nodes to your network led by NFX General Partner James Currier as he shows you a set of mechanisms that will help you build network effects startups even better.
This is an audio version of episode 5 from The Network Effects Masterclass, curated for audio and listening on the go. For the full video experience, transcripts, and recommended reading, join the free Network Effects Masterclass at - NFX.com/masterclass.
Chapters
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Transcript
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