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In 2016, Joel Monegro introduced the idea of the "Fat Protocols." According to this theory, value in blockchain ecosystems would accumulate primarily at the protocol layer rather than the application layer. 

Essentially, most of the value would go into Native tokens used for Transactions, such as ETH and BNB, as opposed to dApp tokens like $CAKE and $UNI. The more decentralized applications (dApps) built on these platforms, the greater the network effects and demand for the protocol’s native tokens. 

This would drive up their value—a reversal from the traditional internet model, in which companies like Facebook capture most of the value while the underlying protocols (e.g., TCP/IP) do not. There are some opposing ideas to Fat Protocol Thesis, one of which was recently discovered via this X post. It proposes a solution called the “Fat User Model”.

The Debate over Value Capture

Despite the compelling nature of the Fat Protocols theory, critics like Pantera Capital argue that value will concentrate at the application layer. 

They believe that dApps focused on specific use cases can build deep moats—like liquidity, user experience, and brand loyalty—that allow them to extract significant value. 

But What About the Users?

Interestingly, the Fat Protocols and application layer frameworks overlook the most crucial stakeholder in the Web3 economy—the user. 

Isn’t the goal of this new financial system to benefit users first and foremost? Yet, they don't appear in any of these value capture models. 

For Web3 to thrive, a fresh approach is needed—one that rewards continuous contributions and reallocates capital to new entrants. 

Why the Fat User Idea is Relevant

This is where the Fat User Thesis comes into play. The current value capture models are temporary mistakes that will self-correct, with Web3 users capturing most of the value going forward.

Competition

In a competitive market, value capture is unsustainable as it tends to be competed away via the mercenary capital problem that has plagued the crypto industry for years. 

The Web3 ecosystem is highly competitive, with forkable open-source code and numerous L1s, L2s, and dApps to choose from. No single player can dominate for long, making it imperative for protocols and applications to continually innovate and provide value to users.

Low Switching Costs

The concept of self-sovereignty and interoperability implies highly mobile assets. Any token, liquidity provider (LP) position, or user activity can easily transfer to another protocol with minimal switching costs. 

This mobility empowers users to choose platforms that offer the best value, further supporting the Fat User Thesis.

Limited Network Effects

Some may argue that the network effects central to the Fat Protocol and application layer are overrated. 

With high competition and low switching costs, bootstrapping a network is easier than ever. New networks can quickly gain traction, reducing the barriers to entry and allowing users to reap the benefits of emerging platforms.

Programmable Incentives

Programmable incentives function as switching rewards, generating on-demand network effects for any protocol or dApp. This dynamic creates a more equitable distribution of value, aligning perfectly with the core principles of the Fat User Thesis.

And now, there’s a dApp that focuses on bringing it all together, officially giving life to the Fat User idea.

Nudge Believes It Has the Solution

Web3 needs a catalyst to fuel the Fat User Thesis, and the Nudge team thinks they have it figured out. The project empowers protocols and applications to incentivize—or “nudge”—users to reallocate their assets, liquidity, and activity. 

This creates a switching reward that effectively redistributes value from protocols and dAppsto users, providing a scalable customer acquisition funnel and a robust retention mechanism.

Most Nudges will not be one-time occurrences but ongoing incentives, rewarding reallocation over time and considering future users. 

This approach is akin to an advertising budget—a recurring expense for off-chain companies—but with the crucial difference that this “advertising budget” directly benefits the end-user, not intermediaries like Google.

Still in the pre-launch phase, Nudge is expected to transform the on-chain economy by reallocating value to users, ultimately expanding the entire ecosystem. By empowering users with programmable incentives, Nudge aligns with the Fat User Thesis and drives a more user-centric Web3 economy.

Fat Users Are the Web3 End Game

The discourse surrounding the Fat User Thesis signifies a paradigm shift in the Web3 ecosystem. By challenging the existing value capture models that predominantly favorprotocols and applications, it advocates for a more user-centric approach that prioritizes users' needs and contributions. 

Platforms like Nudge exemplify how programmable incentives can be harnessed to drive user engagement and ensure equitable value distribution. Web3's success hinges on its ability to empower users, making them the key beneficiaries of this new financial framework. 

By embracing this perspective, the Web3 community can build a thriving, inclusive ecosystem that redefines engagement and value in the digital world.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

The Web3 landscape is on the cusp of a paradigm shift, driven by the emergence of innovative technologies that promise to redefine how we interact with decentralized applications (dApps) and manage digital assets. At the forefront of this revolution stands @DAPPOS_COM , a pioneering project that leverages the power of intent-centric blockchain infrastructure to create a more user-friendly and efficient Web3 experience.

The Impact of "Earning Yield While Ready for Use"
One of the most compelling features of dappOS is its ability to enable users to earn yield on their digital assets while they are actively in use. This concept, often referred to as "earning yield while ready for use," has the potential to revolutionize the Web3 industry in several ways:
Enhanced Asset Utilization: Traditional digital assets often remain idle in wallets, generating no value. dappOS empowers users to earn yield on their assets even when they are being used for transactions or interactions with dApps. This maximizes the utility of digital assets and provides a continuous stream of income for asset holders.Increased Liquidity: By offering the opportunity to earn yield, dappOS makes digital assets more attractive to investors, leading to increased liquidity in the market. This can stimulate economic activity within the Web3 ecosystem and encourage greater participation from a wider range of users.Incentivized Participation: The ability to earn yield while assets are in use incentivizes users to engage more actively with the Web3 ecosystem. Whether it's staking, lending, or providing liquidity, dappOS offers a compelling reason for users to participate in various dApp activities.Sustainable Growth: By promoting the long-term holding and utilization of digital assets, dappOS contributes to the sustainable growth of the Web3 industry. This approach helps to reduce the volatility often associated with digital assets and fosters a more stable and resilient ecosystem.
Why dappOS is Poised to Become a Leading Web3 Project
dappOS is uniquely positioned to become a leading Web3 project due to several key factors:
Intent-Centric Infrastructure: dappOS pioneers the future of intent-centric blockchain infrastructure, which simplifies user interactions with dApps by allowing users to express their intentions in a more natural and intuitive way. This approach eliminates the need for complex technical knowledge and makes Web3 accessible to a broader audience.Unified Accounts and Real-Time Interaction: dappOS integrates advanced components such as unified accounts and real-time dApp interaction, providing users with a seamless and efficient experience. This eliminates the need for multiple accounts and wallets, streamlining the management of digital assets across different dApps.Strong Ecosystem Support: dappOS has garnered significant support from top investment institutions, including Polychain, Binance Labs, and Sequoia Capital. This backing not only provides financial stability but also validates the project's potential and vision.Developer-Friendly Environment: dappOS offers a developer-friendly environment with tools and resources that empower developers to create and enhance intent-centric functionality efficiently. This fosters innovation and accelerates the development of new dApps and services.
Promoting Ecosystem Development through the Joint Airdrop Event
The joint airdrop event hosted by dappOS and Binance Web3 Wallet is a strategic initiative aimed at promoting the development of both ecosystems. This event will contribute to their growth in several ways:
Increased User Engagement: Airdrop events are known to attract a large number of participants, which can help to increase user engagement and onboard new users to the dappOS and Binance Web3 Wallet platforms.Cross-Ecosystem Collaboration: The collaboration between dappOS and Binance Web3 Wallet fosters cross-ecosystem interaction, allowing users from both platforms to explore and utilize the services offered by each other. This can lead to a more interconnected and robust Web3 ecosystem.Awareness and Adoption: The airdrop event serves as a marketing tool to raise awareness about dappOS and Binance Web3 Wallet. As more users become aware of the benefits and features of these platforms, adoption rates are likely to increase.Community Building: Airdrop events can help to build strong and active communities, which are essential for the long-term success of any Web3 project. Engaged communities can provide valuable feedback, support, and contributions to the development of the ecosystem.

dappOS is poised to revolutionize the Web3 industry with its innovative approach to intent-centric blockchain infrastructure. The ability to earn yield while assets are in use represents a significant breakthrough that has the potential to enhance asset utilization, increase liquidity, and promote sustainable growth. With strong ecosystem support and a developer-friendly environment, dappOS is well-positioned to become a leading Web3 project. The joint airdrop event with Binance Web3 Wallet will further promote the development of both ecosystems, driving user engagement, cross-ecosystem collaboration, and community building. The future of Web3 looks promising with dappOS leading the way.

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