The Taipei Blockchain Week (TBW) entered its second day today (13th), with a panel discussion on the topic of "Investing in the Future: How VCs are Fueling Web3 Innovation and User Onboarding" held in the morning.
The panel featured Noelle Lee, Co-founder and Chief Revenue Officer of Lydian Labs, Ciara Sun, Founder and Managing Partner of C Squared Ventures, Glen Aw, Investment Manager of Presto Labs, and Leo Zhao, Investment Director of MEXC, who discussed the role of venture capitalists (VCs) in driving the development of Web3 technology, promoting innovation, and enhancing user experience and onboarding.
The following are the key insights and discussion highlights from the panel.
Blockchain Innovation and User Value: The Key Role of Token Design
Ciara Sun stated that in the current investment environment, the utility of token design is crucial for attracting mainstream users. When evaluating projects, one should carefully examine how the tokens capture value, especially in the more active investment environment today. Project teams should ensure that the overall token design is logical to attract mainstream users. If a project does not require a token, she would not recommend the team to issue a token just for the sake of it.
Glen Aw pointed out that liquidity is the core of the cryptocurrency domain, and token models, with their high flexibility and efficiency, provide the possibility for teams to raise funds quickly and for investors to exit quickly. He also believes that projects that do not rely on tokens also have potential, such as hardware accelerator projects with equity financing models.
Leo Zhao raised a rather controversial point: currently, most projects do not have enough dependence on the token economy. He believes that token design should be more innovative, such as through fee incentive mechanisms to achieve real value capture.
User Onboarding and Mass Adoption: Challenges and Breakthroughs
Regarding how to drive mass adoption of Web3, Ciara Sun believes that the current blockchain infrastructure is relatively mature, but lacks a "killer application" that can attract Web2 users, such as technologically mature and user-friendly games or social applications.
Glen Aw supplemented that user experience and distribution channels are key, and he pointed out that the concept of Account Abstraction has significantly improved the user experience. He also suggested utilizing mainstream social tools (such as Telegram, Kakao, and Line) to lower the entry barrier.
Leo Zhao stated that he hopes to see more tools that allow users to participate easily, such as simple and easy-to-use applications, which can attract more newcomers to the cryptocurrency world.
The Vision for the Next Decade: The Legacy of Investment Portfolios
Looking ahead to the next ten years, what kind of projects in their investment portfolios would they hope to be remembered for, and what kind of legacy would they like to leave behind?
Glen Aw hopes that his investments will be remembered for driving innovation in blockchain infrastructure, particularly in the development of hardware accelerators and scalability technologies.
Ciara Sun emphasized the importance of sustainability, and she hopes to support projects that are aligned with global sustainability goals, such as decentralized storage, to enhance the resilience and long-term scalability of the system.
Leo Zhao looks forward to the emergence of more mainstream AI tools that will change the way people interact with technology.
Exploring Future Financing Models
When asked what a completely new financing mechanism would look like if they were to design one, Ciara Sun believes that the role of VCs is still indispensable, as they provide not only capital, but also strategic guidance.
Glen Aw mentioned that while the Fair Launch model has potential, the key to success lies in the team's capabilities and self-funding support.
Leo Zhao proposed that auction-based financing mechanisms and collateral-backed models may be viable directions for the future, as they can help achieve better price discovery and project support.
