Named one of the leading startup voices in Australia, Joan (or The DAO Joan Index of Substack publication Pizza Party) weighs in on the next 100 million DeFi users – and it shouldn’t surprise you.
“DeFi will be reborn through demographics that have been failed by the traditional financial system and who are now ready to take control of their own destiny,” begins Joan in her piece about the next DeFi users, or the tech-savvy demographic between the ages of 18-30, entering their prime spending years, meaning they’re more likely to invest in cryptocurrencies than any other age group.
That makes sense, right?
This generation, adds Joan, has been rejected by the existing financial system they know, which has done nothing but betray them. A generation that cannot afford to buy property, let alone pay their monthly rent. A generation failed by banks and their elders. A generation facing inflation.
In search of financial alternatives, Web3 technologies are their best bet for the future.
“They are struggling financially and can’t afford traditional investment options, but they are still young and optimistic enough to believe that web technologies will eventually upend the status quo and idealistic enough to believe in the power of crypto to create a more fair and just world.
A generation in crisis is no less a generation searching for hope, capital, and financial growth; the owned web offers all these things. The next 100 million users of web three will be those who were left behind by the previous system and are now ready to participate in an alternative,” adds Joan.
These users will thus opt to spend a percentage of their income on crypto, and with crypto needing an influx of users, projects should focus on being mobile-first and mobile-only and aim to be user-friendly with straightforward tokenomics.
“It will need to consider the lower spending power of this userbase, appeal to their inclination to purchase commodities in lower volumes and fractional units, and offer a path to accumulation through staking, airdrops, and yield-bearing products,” she explains.
This social media savvy generation will need to be informed accurately about Web3, but through a trusted information source, unlike the well-known social platforms of TikTok or Twitter, known for scams and misinformation.
“If we can successfully bring these users into the fold, we have the opportunity to both rewrite existing financial systems and provide opportunities for growth, economic freedom, and security to people who have been otherwise abandoned, who have the most to gain, and the least to lose. It’s an opportunity to change the world by changing the destiny of a generation.”
Check out Joan’s full piece over at Pizza Party!