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Elastos governance and incentive flaws threaten ecosystem growth

I find it striking that after years of developing multiple products—such as Decentralized Identity, merge-mining, and the Essentials wallet—the Elastos blockchain ecosystem hasn’t produced a single killer app with real market impact. The core issue, in my view, is flawed incentive mechanics and ecosystem dynamics. For eight years, ecosystem project teams have been more focused on securing funding from the Elastos Foundation than on actively growing the market, expanding the community, or earning market recognition. Consequently, technically promising products remain shelved and largely ignored.

Even more perplexing is that when Han Feng tried to bring in external communities to broaden the ecosystem, the effort was met with skepticism or even accusations of deceit. This points to deep-rooted governance, engagement, and strategic-direction issues within Elastos. If the ecosystem continues to rely on the current DAO funding mechanism instead of proactively pursuing market viability, broad community expansion, and tangible user value, these projects will struggle to create a positive market feedback loop, and ecosystem growth will stay constrained.

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Analysis

Contextual factors include a long-standing misalignment between funding incentives and product-market fit. Projects funded by the Elastos Foundation may prioritize fundraising milestones over deliveri...

Recommendation

Recommendation A: Recalibrate funding to reward market outcomes. Establish milestone-based grants tied to user acquisition metrics, actual product adoption, and measurable ecosystem activity rather th...

Disclaimer

The Analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.

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