ReFi's Unholy Trinity

It has been a long, hard road for ReFi projects. Despite (or perhaps because of) its altruistic intentions, it hasn't enjoyed the same level of interest as other crypto sectors, and all the trappings that come with it.

Trinity Morphy wanted to find out why that is. What has been holding ReFi projects back? His conclusion: an Unholy Trinity of sorts. Low user adoption, undercapitalisation, and lack of attention.

ReFi projects struggle to generate revenue or attract investors, leading to funding shortages. Limited funds restrict marketing capabilities, making it difficult to compete for visibility and attention. Without awareness, potential users never discover the solution, reinforcing low adoption and the cycle continues. This creates a self-reinforcing cycle where each problem exacerbates the others.

Not dissimilar to startups in other industries, true, but ReFi is unique in that it is the one crypto sector actively trying to bridge on-chain actions with off-chain impact.

First, using ReFi solutions requires going through a longer learning curve which involves learning to use Web3 wallets on the crypto side and learning to enjoy seemingly mundane activities like cleanups and tree-planting on the sustainability side. Furthermore, the issue of misaligned incentives across both sectors create friction, as crypto's short-term profit-driven culture often clashes with the long-term impact goals of the sustainability sector. Finally, there’s the difficulty of addressing dual narrative requirements, needing to effectively communicate their value to both the crypto and sustainability communities, which often have differing expectations and priorities.

A long, hard road indeed. But Trinity has some solutions. Read on 👇 to find out.

ReFi's Unholy Trinity | CARBON Copy

Trinity Morphy explains why ReFi projects struggle, and what they can do about it.

https://carboncopy.news

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Trinity Morphy wanted to find out why that is. What has been holding ReFi projects back? His conclusion: an Unholy Trinity of sorts. Low user adoption, undercapitalisation, and lack of attention.

ReFi projects struggle to generate revenue or attract investors, leading to funding shortages. Limited funds restrict marketing capabilities, making it difficult to compete for visibility and attention. Without awareness, potential users never discover the solution, reinforcing low adoption and the cycle continues. This creates a self-reinforcing cycle where each problem exacerbates the others.

Not dissimilar to startups in other industries, true, but ReFi is unique in that it is the one crypto sector actively trying to bridge on-chain actions with off-chain impact.

First, using ReFi solutions requires going through a longer learning curve which involves learning to use Web3 wallets on the crypto side and learning to enjoy seemingly mundane activities like cleanups and tree-planting on the sustainability side. Furthermore, the issue of misaligned incentives across both sectors create friction, as crypto's short-term profit-driven culture often clashes with the long-term impact goals of the sustainability sector. Finally, there’s the difficulty of addressing dual narrative requirements, needing to effectively communicate their value to both the crypto and sustainability communities, which often have differing expectations and priorities.

A long, hard road indeed. But Trinity has some solutions. Read on 👇 to find out.

ReFi's Unholy Trinity | CARBON Copy

Trinity Morphy explains why ReFi projects struggle, and what they can do about it.

https://carboncopy.news