# Web3 Playbook for Brands 

**Published by:** [Romil](https://paragraph.com/@romil/)
**Published on:** 2022-03-02
**URL:** https://paragraph.com/@romil/web3-playbook-for-brands

## Content

The Web3 Step-Change – enabling you to truly own digital assetsThe core step change that web3 enables is that you can now truly own digital assets, in a way that is as verifiable as real world assets and immutable (unchangeable), similar to clothes that you own. Previously I could buy a digital asset (e.g. a skin in a Fortnite) but that wasn’t really mine, if Fortnite shut down I’d lose it, if Fortnite closed my account I’d lose it. Moreover, I could only use the skin on Fortnite, so I only own it in Fortnite world – in web3 if I own an asset, I own it and can use it on any platform on which it can connect. Similarly, I can now own digital assets associated with brands and do with them what I like, they are “composable”.Why Digital Assets are better for identifying community than physicalDigital assets do not deteriorate in the same way as physical assetsIt is easier to show origins of digital assets than physical as you can trace origins and more easily weed out fakesLower barriers to movement and composability – easier to transfer ownership online than via physical mail systems, and easier to build things (e.g. communities, utility) on top of digital assets than physicalCore web3 value levers for brandsRevenue from NFT Sales and/or royaltiesOrganic marketing through the web3 brand communityIncreased closeness with a more vocal/active and therefore a more engaged community - leading to a better product and more revenue for the businessNFT community is also financially tied into the success of the brand through value accretion for the NFTs that they own, but do not eat into the brand’s profitsWeb3 Activation StrategyWe split Web3 activation strategy into 4 levels. At each level the amount of autonomy and decentralization that the community has increases. Brands have the power to halt this progress at any of these 4 stages. Every step that the brand takes across this chain also helps to build out the brand’s web3 social graph, which will enable them to better understand their core community.NFTs for activationLaunching an NFT collection through:i. An initial sale; orii. Using work to earn and other creative activation tools to release the NFTsCore objectives are to:i. Bring non-web3-native members your current brand community into web3ii. Activate the web3 native members of your brand’s communityiii. Leverage web3 opportunity/PR to activate for your brandBrand NFT community forms and acts as both:A closer voice for the brandi. Brand now have an active web3 community and a mechanism for you to listen to themii. Community is incentivized for brand to do well as they are tied into the upside as value will also accrue to the NFT/tokenb. Organic marketing tool:i. Community activity will provide coverage for your brandii. Brand token holders can all be identified on chain, and can form a home in a token-gated channel like discord; through which they can co-ordinate/work together with a joint purposeiii. Community can leverage a treasury to fund activities that the community think of as goodDecentralized Autonomous Organization (DAO) formation:a. Community expands and usually launches a fungible token.b. Side web3 ecosystem (DAO) built beside the business and owned by the community, leveraging more interesting:i. Tokenomics (e.g., staking, burn mechanism, LPs)ii. Incentive designiii. Token utilityc. DAO is built through leveraging the brand’s existing community and shares the brand’s purpose. DAO does not absorb the profits of the existing business and instead benefits the business through the three core web3 value leversCompany owned by the DAOa. Same as above, but now the brand is in effect sold to the communityb. Most likely happens if the DAO reaches a sufficient value to acquire the brand at more than an IPO value

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