The NFT market faces challenges, but it remains an important entry point for Web3

The current NFT market is at the forefront of attention, facing numerous challenges, but it remains an important bridge for traditional internet users to transition into the Web3 world.

Analysis of the Dilemmas in the NFT Market

NFTs are mainly divided into two categories: production type and collective type.

Production-type NFT (, such as GameFi ), is facing the dilemma of "either growth or extinction." Unrestrained issuance leads to inflation, unstable value, and ultimately falls into a death spiral. The ecosystem is too fragmented, with various projects not interconnected, making it difficult for users to engage deeply.

Collective NFTs (, like PFP ), form closed circles due to scarcity, making it difficult to realize value expansion. The community size is limited, with at most a few thousand participants. Over-replication and derivatives dilute brand tone. The lack of practical application scenarios makes it hard to form a sustainable narrative, resulting in a hollow user experience.

The Unique Value of NFT

Compared to cryptocurrencies, NFTs have the following advantages:

1. Non-financial characteristics lower the psychological barrier for users.
2. Low liquidity actually makes users feel safer.
3. Can convert between Token and NFT to enhance asset liquidity
4. Facilitates the design of activities to enhance community engagement and sense of belonging.
5. It has unique social and emotional value, representing personal identity and interests.

Experience Summary of StepN

1. The Move-To-Earn model has been validated by the market and has great potential in the health and fitness sector.

2. An effective anti-cheat system and activation code mechanism are crucial for sustainable growth.

3. Web3 user onboarding is more complex than Web2, requiring more education and guidance.

4. Web3 social is a necessity and should focus on building a real and trustworthy social environment.

StepN Go's Sustainable Growth Strategy

1. Capture user attention

   • Value the scarcity of attention
   • Timely communication of key information
   • Zero Investment Incentive Mechanism
   • Simplify user experience

2. The potential of familiar social networking

   • Trust-based deep interaction
   • Expand influence using the six degrees theory
   • The leasing system promotes user collaboration
   • Focus on real user experience

3. Sustainable Growth Strategy

   • Slow and steady growth, allowing time for consensus formation
   • Extend product lifecycle
   • Redesigning the economic model
   • Control the growth rhythm through activation codes
   • Improve the mechanism to eliminate the source of inflation

Strategies for End-game Phase

1. Understand the essence of End-game

   • Considered a turning point rather than an end
   • Reassess market positioning and user needs

2. Promote user consumption

   • Establish internal consensus
   • Collaborate with major brands to enhance image
   • Expanding influence through IP collaboration

3. Utilize social sharing

   • Design "Show off" mechanism
   • Strengthen social media marketing
   • Encourage users to generate content

Through these strategies, NFT projects can find new opportunities amidst market challenges and achieve sustainable development. The key lies in understanding user needs, providing real value, and continually optimizing the user experience.