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How to Assess Product-Market Fit (PMF) in a Web3 Product

  • Product-market fit in Web3 is often misrepresented, focusing on behavioral dependency.
  • PMF starts with solving real, ongoing, painful problems for specific user groups.
  • Building for a small, high-frequency user group with an atomic network is crucial for PMF.
  • PMF is when users can't live without the product, not just having a high number of users.
  • Retention and user behavior without incentives are key indicators of PMF.
  • Users should demonstrate emotional engagement and integrate the product into their workflow for PMF.
  • User obsession and frustration are stronger signals than praise for PMF.
  • Tokens should amplify behavior, not be the primary driver; PMF should persist through bear markets.
  • Assess PMF under pressure, looking at sustained usage across different market cycles.
  • True utility in Web3 is rare, making achieving PMF essential for a product's survival.

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