Hi everyone. As I’m learning about the ICP every day, my brain and intuition is on fire with ideas, potentials, and even more questions
One such question is: Why would companies and organizations want to build on the ICP, or be on the ICP, or move/migrate over to ICP? What’s in it for companies/organizations? Why they should care?
To kickstart the process, I wrote down 6 USPs/Reasons in a non-techy and simple language that every founder, entrepreneur, business owner, executive, or decision-maker can understand.
I’d deeply appreciate it if you added your points. What’s missing here? What points to add?
#1: Fundraising: Gain Access To A New Source & Breed Of Capital
A company can raise capital from its most loyal (or future) customers by issuing its own Coin/Token, without necessarily giving away equity. This is done through a series of private sales, pre-sales, airdrops, and public sales (e.g. ICO, IDO, IEO, etc).
Token holders enjoy certain benefits such as:
- Utility, and/or
- Governance (e.g. voting rights), and/or
- Equity (e.g. participation in profit sharing)
People who buy, receive, and hold the company’s tokens are not passive investors. Instead, they’re pro-active participants and contributors who provide all sorts of added value to the company described below.
#2: Product > Innovation: Build Products & Features That People Want
App users who hold the company’s token feel a sense of belonging. They are more likely to participate and collaborate with the company by providing feedback, sending feature requests, reporting bugs, doing testing, etc
This helps the company improve its existing product/services faster and cheaper, decrease the probability of releasing features that nobody likes, and discover new features/products.
#3: Growth > User Retention & Engagement: Engage & Retail More Existing Users
Retention is the queen and king of product growth and adaption. The company’s token can serve as a driver to increase engagement, royalty, and retention of app users.
3.1 App users who hold company’s token are more likely to use and engage with the app because of their sense of belonging and vested financial interest.
3.2 App users are rewarded with tokens for completing key actions in the app that lead to activation or AHA moment, drive repeat usage, user engagement, and retention (e.g. watch a video, book a ride, post content, send a message, etc)
#4: Growth > User Acquisition: Acquire More New Users Faster & Cheaper
4.1 Referrals: Existing users can be incentivized and rewarded with tokens for referring new users. This can be done with all kinds of referral mechanisms such as 2-sided rewards (e.g. When your friend joins the app and performs acton X, you both earn Y tokens.
By converging #3 (User Engagement & Retention) and #4 (User Acquisition) the company can get traction and reach a point of network effects faster and cheaper.
4.2 Sponsorships/Influencers: Instead of paying in for sponsorships, influencers and mentions using a fiat currency or stablecoin (e.g. USDT, USDC), a company can offer to pay in its native token, enabling the receiver of token to potentially earn even more over time as the token value appreciates.
#5: Culture > Talent Acquisition & Retention
The company’s token can serve as a magnet to attract and retain top talent. Team members (employees, contractors, etc) receive and earn MVC tokens for their loyalty and contribution to MV Team, without Mindvalley as a company to give away equity.
#6: Ops & Execution: Become A Leander, More Agile & Faster Organization
Speed of operations and execution is a competitive advantage in today’s world of exponential process and acceleration of innovation.
By building on the ICP:
- the company decreases dependency on the WEB2 tech stack, and complexities of integrating (and maintaining) tech integration of countless APIs and 3rd party services.
- the company speeds up the time and process of implementing or mainlining various integration because all (most) of APIs and services required are provided by, or hosted on, the ICP.
User Case: In my two previous companies, we’ve always (always!) been dragged down and slowed down operationally by some old legacy systems or integrations.
Because we had to cross-integrate a bunch of different services and integrations, at any given point we’ve always been migrating from some old legacy system to a new one, and such migration always slowed down the progress of the entire project and organization.