, a reality dating show, allowed NFT holders to control different elements of the show, such as voting on the winning couple and influencing the set design. Creating a richer experience of control around users’ crypto tokens can engender greater psychological ownership and loyalty.
The trick here is that users have to care about the particular type of control and feel a sense of agency in order to value their asset ownership. One reason most protocol governance sees low participation, with participation in proposals among DeFi protocols, is that the average user may feel that their level of influence is insignificant, which reduces their sense of control.If creators can engender a sense of psychological ownership among their tokenholders, it could mean turning a speculative user base that sees the creator as a potential path to profit into an engaged community that is long-term oriented and places disproportionate value on their relationship to the creator.
Crypto projects can foster greater user retention and loyalty by standing for a clear set of values that resonate with their owners. The opportunity is for builders to hone their positioning and storytelling to make it clear what they stand for, attract those users who resonate with that mission, and activate them as further evangelists of the narrative.
In Web3, cultivating psychological ownership and defensibility as a product relies on other drivers. Those include investment of self through customization or distribution of a token; intimate knowledge that is built through user habit; self-object congruity with a clear brand identity; or proprietary product elements like better discovery algorithms and off-chain data.
The title had me up until the last word…
ljin18 BULLISH