Demand

Value of the product

What value does the actual product create?

1. What does the project produce / sell? Is the project transparent about sales / income / revenue streams?
   • many things. They are a community first approach where they have figured out what products to build later.
     • ticket software for real-life events, art, NFT, events, discord tools, online resources
     • they build a lot of other products but the revenues are not always clearly associated with FWB.
   • intersection of technology and culture
   • revenue some are listed here: https://docs.google.com/spreadsheets/d/18dinJO8Xgy1AG57vB6srQDgHTYrMKM4AfgBl8Bcs--o/edit#gid=870049811
   • best source is always snapshot: https://snapshot.org/#/friendswithbenefits.eth/proposal/0x6103bb1ea23c1a5bc11b747e4ac1089d64aee8158f48abe663a1186c9b1ee012
   • the main value is the community and bringing people together
2. What is the perceived value of the project and how does it increase?
   • exclusive gated community with access to benefits and a network of talent
   • the community builds tools and these tools could become valuable and bring revenue to the community but also attract more members that want to be part of this network.
3. Does it promise returns? How risky are they? Where do they come from (is more money required to achieve the returns)?
   • no.
4. What is the products unique selling proposition?
   • Exclusive community connecting tech & culture people. USP can be hold by staying the most relevant community. it will be interesting to see how new members might be held off by the high barrier of entry and instead form their own communities.

Evaluation: Each question should help get a good understanding of what is produced. The token is not the product so it is important to understand what the token should support.

Scoring: On a scale from 0 to 100, how valuable is the product, does it have a good market fit and will attract customers/users?

• 60: as it has a strong community now but communities and network effects don’t really have a moat, unless they are massive. A new community could form and attract members and thus make the inflow of new members stop - that’s the mechanism required to keep it going.

Utility of the token

Why do people want to buy & hold the token?

1. What are the utilities of the token (e.g. ROI, governance, collateral usage, status, access to service etc.)? List them all and rank them by how strong they will impact the demand for the token?
   • Membership to gated community
   • Governance
   • Reward payment for contributions (raising time)
2. Do the utilities encourage holding or spending the token (e.g. if the token is used as payment for a service that might indicate people use it a lot).
   • Membership encourages holding but only up to the threshold.
   • Governance is a driver for holding tokens. Questions is how important the decisions are. Snapshot mostly votes on NFTs, budgets etc.
   • Payment for contribution is probably mostly sold.
3. How is the utility connect to the value of the actual product?
   • Quite well. Membership is the main utility and as such well connected to a gated community.
4. What are the mechanisms with which the token accrues value? (we talked about it here)
   • ownership
   • hold for access to value
   • access to future value of the project

Evaluation: The questions should give an understanding of the role of the token. Is it connected to the value of the product and what makes it worth holding.

Scoring: On a scale from 0 to 100, how likely are users to hold or use the token?

• 70: the token is well connected to the value creation and up to a certain degree worth holding.