In this article we are going to discuss a major issue that LEO has. It is not isolated to this platform. In fact, it is the error of Web 3.0. Nowhere do we see this basic tenet being addressed.
While it is applicable to the wider industry, the scope of this is Leo. Therefore, we will mentioned the specifics regarding what is happening along with what must take place if we are to be successful.
There is a great deal of conversation of late about the Flywheel Effect and getting it going on Leo. This is a fantastic goal yet it is just that. This is not a pathway to follow as much as a result.
For that reason, focusing upon the Flywheel is akin to concentrating on weight loss as opposed to the actions required to get to that destination. Nobody ever met a weight target by staring at the scale.
From this analogy, we encounter the basic premise of Flywheels: they are almost always preceded by network effects.
In other words, without network effects, there is little chance of a flywheel type situation occurring, especially on a digital platform.
Source
Contributing Factors
To alleviate getting too deep into this, we will deal with a few basics regarding the Flywheel Effect and what contributes to them.
The hardest part is to get things going. Physics teaches us that something that is at rest tends to stay at rest. The reverse is also true with objects in motion.
Hence we have this list:
- momentum
- feedback loops
- auto catalysts
- compounding
- network effects
Hopefully, by now, it is clear that we are dealing with more than just "get more users". While this is one form of network effects, it is the hardest to produce. The reason being is that other networks already have that in place.
For example, Facebook is so powerful because people's friends and family members are there. They are not going to leave due to the fact their social community is located there. We see the same thing on Hive with people on X. That is where they engage.
This is, however, only a small piece of the puzzle. There are many platforms that have network effects without any social media. Apple is an classic example. This is the most valuable company in the world based upon market capitalization. As a digital platform, it is at the top of the list.
So how does Apple achieve a network effect without a being a social platform.
The answer lies in what comes next..the idea of "OnLeo".
Creating "OnLeo"
What the heck does this mean?
Simply, it is whatever..on Leo. We can have Music on Leo. News On Leo. Movies On Leo. Recipes On Leo. Sports On Leo.
Whatever the area of focus, it can fall under OnLeo. Here is where we start the process of establishing the steps towards the Flywheel Effect. It is a way to build the momentum for something that is at rest.
In this instance, it is Leo; or more specifically, activity that takes place on Leo.
Digital platforms become so valuable because the make the cost of transacting inexpensive. This means more than just financial transactions although that is a part of it. With Leo, it is crucial to get the opportunities for activity up.
Another way of looking at this is page view. We have a system that monetizes the activity. Hence, it is only a matter of pushing that to a higher level. Increased page views as a result of expanding network effects is going to generate a massive Flywheel Effect.
How does this look in practice?
To illustrate this, we will use Music on Leo. Keep in mind, this will apply to any idea of this nature.
Music on Leo
We start the conversation with the fact there are different components to Music on Leo that we are working upon. Here we already see an exponential impact simply by having more than one pathway being followed.
The process starts with embedding YouTube music onto Threads. It is something we have done for a couple month, to the tune of over 4,000 songs. This is a decent basis to begin the process.
All the threads are captured and placed on pages that are on-chain. With some basic menu mapping, we have a traffic flow that results. Over time, we will see more pages being added, encompassing previous pages made, to provide even more pathways for people to follow.
The key here is that we have more for people to engage with while also providing outlets for them to follow.
Next we have playlists. This is another way where individuals can generate more threads with songs in this, this time using the playlist concept so common with music platforms. I will do an article in the future on how to easily create these.
Stacked on top of this is the idea of capturing all the playlists and, once again, creating a page for them. With the menu mapping, as these grow, they will result in more pages of playlists. For example, how about a page of playlists by Drake. Here is where, if we have a few dozen different playlists, we can put them all together for people to utilize.
The repurposing of the data is something crucial. We do not use what is in the database only once. We have to repeatedly keep pushing it out.
Here is the key:
As the activity increases, more people join in. What starts at rest becomes a Flywheel unto itself, albeit not in the monetary sense. Others see what is happening and start to get involved. At present, we have some adding songs to the database. Next up is to get some starting to make the different playlists.
This is how exponentiality happens. Of course, with each step forward, we have more to offer. This can mean a variety of things since we are dealing with something that keeps expanding. One notable result is the fact we have a lot that we can share with others. These lists can be passed around, letting others know what we are interested in.
As more people join in, and the output increases, we have more to promote. At the same time, users have more items they can click on, increasing page views.
The biggest benefit to this system is the material that can be located each day keeps growing. A song placed on chain a month (or year) ago, is still able to generate page views. It is also located in the database, usually under the article singles page (which are also growing).
OnLeo Initiatives
Here we see how things are enhanced by a number of OnLeo initiatives. There is no limit to what can be created. As people start to understand and apply these concepts, the ability to multiply the efforts occurs. Here is where we have the compounding effect.
One thing to remember about Flywheel Effects is that, when applied to a company, they are not the result of some grand action or break through move. Instead it is the progression forward of a series of positive actions. Incremental successes are all captured by the platform and increase the value over time.
If people focus their activities on Leo to these types of efforts, the process naturally unfolds.
It is also vital to achieve the Flywheel Effects that are desired.