Web3 faces the ultimate UI/UX challenge: Here’s why

Welcome back to Web3 Creator!

Today’s edition is dedicated to exploring the high stakes of UI/UX in Web3, bringing you expert insights to navigate this emerging landscape.

Web3 faces the ultimate UI/UX challenge: Here’s why

A tough act to follow: Web1.0 and Web2.0 emerged when smartphones, laptops, and IoT devices were still gaining traction. Early adopters tolerated clunky interfaces because the technology represented a massive leap forward. Dial-up was slow, but email was still a game-changer compared to traditional mail.

A digital explosion: From 2000 to 2016, internet users skyrocketed from 0.41 billion to over 3.4 billion. By 2005, the internet had crossed the one-billion-user mark, with 640,000 new users coming online daily from 2011 to 2016. These users navigated the digital world through increasingly sophisticated interfaces, marking the evolution from basic GUIs to advanced UX designs.

The rise of Web2.0: Web2.0 introduced social media, APIs, and the IoT, pushing digital adoption into the mainstream. Millennials transitioned from PDAs to smartphones, and even the tech-averse joined in. The internet became ubiquitous, driving significant usability improvements and making UX a household term.

Enter Web3.0: Now, Web3.0 is here, facing a user base more tech-savvy than ever. GenZ is trading stocks on Robinhood, flipping shoes on StockX, and earning from gaming. Unlike Web1 and Web2, Web3 must meet high expectations right from the start, navigating uncharted territory with a demanding, tech-literate audience.

High stakes for UI/UX:

• User expectations: Today’s users demand sleek, intuitive interfaces. Clunky, confusing journeys won’t cut it. Speed, clarity, and excellent feedback loops are non-negotiable.

• Valuing design: The role of UI/UX designers is more critical than ever. Companies recognize the need for seamless user experiences, leading to increased demand for skilled designers. Terms like ‘Usability’ and ‘Simple experiences’ are becoming common in discussions about Web3.

The UI/UX problem: No sh1t…

Despite these high stakes, Web3 projects often overlook the importance of hiring UI/UX professionals. Better UX leads to more users, more customers, and ultimately more revenue. Yet, the industry is still in its nascent phase, and projects often prioritize technical solutions over user-friendly interfaces.

Community vs usability: Listening to your community is vital but isn't the same as user research. The next billion users will seek convenience above all. There's a growing recognition of the UI/UX challenges in Web3 and the need to educate new users properly. More start-ups should allocate capital towards hiring UI/UX experts instead of assuming engineers can handle it.

A changing attitude: The $52 million raise by Magic highlights the importance of seamless UX. This could signal a shift in the industry’s attitude towards valuing professional UI/UX design. It's a much-needed change, as better interfaces will drive the broader adoption of Web3 technologies.

The bottom line: Web3 is set to face the toughest UI/UX challenge any industry has ever encountered. As we build the future of digital experiences, the emphasis on creating intuitive, user-friendly interfaces will be paramount. The bar is higher than ever, and the race to meet it is on.

If you're developing in the Web3 space, how do you perceive the need for UI/UX today compared to a decade ago?

Polkadot defends $37m marketing splurge amid scrutiny

The big spend: Polkadot, one of the longest-running blockchains, has faced criticism after revealing it spent $87 million in the first half of 2024, with $37 million dedicated to marketing efforts, including influencers and private jets. Critics argue that despite the hefty marketing budget, Polkadot has little to show for it, leaving the community frustrated.

Why it matters: Tommi Enenkel, Polkadot’s head ambassador, shared the report detailing these expenditures. The $37 million spent on marketing initiatives accounted for 42% of Polkadot’s expenses. Despite this, Polkadot remains "invisible" on social media platforms like X, the rebranded Twitter, as noted by pseudonymous crypto influencer Ignas.

Financial perspective: To put the spending in perspective, Polkadot's onchain treasury of $245 million is now projected to run dry in two years. This significant outlay has drawn fire, especially given the current crypto market's scrutiny.

Marketing breakdown

Polkadot’s marketing expenses included:

• $180,000 for branding on private jets.

• $400,000 for an animated logo on CoinMarketCap.

• $5 million on influencers (KOLs).

• $7.9 million on events.

• $10 million on ads and sponsorships, including:

  • $6.8 million for a soccer club sponsorship.

  • $1.9 million for sponsoring race car driver Conor Daly.

  • $1.3 million for an e-sports partnership with HEROIC.

Despite these efforts, Polkadot’s marketing strategy appears to have flopped, especially when compared to more efficient campaigns in the Web3 space.

Industry standards: Jeeper, a report co-author, defended the spending, stating it’s comparable to other networks whose expenditures are not publicly disclosed. "All the networks have similar spending, but they are happening behind closed doors," Jeeper told DL News.

Financial stability: Despite the heavy spending, Polkadot isn’t facing immediate financial issues. The treasury, worth about $245 million as of July 1, is continuously replenished by newly issued DOT. Unlike other networks, Polkadot can allocate a portion of inflation to its treasury, funding growth initiatives.

Past controversies: Polkadot has been no stranger to controversy. Last year, Parity Technologies, its parent company, unexpectedly laid off many employees before a retreat in Mallorca. Additionally, Polkadot's token, DOT, has seen an 88% drop from its 2021 peak of $55, though it remains a key player in the blockchain space.

Strategic shifts needed

Polkadot’s current marketing approach has been critiqued for its lack of tangible results. Moving forward, the blockchain project might benefit from:

1. Performance-based marketing: Utilizing cost-efficient strategies with clear performance metrics.

2. Community building: Investing in grassroots engagement and user education to foster loyalty.

3. Targeted promotions: Focusing on ads and collaborations that directly appeal to the Web3 community.

4. Value partnerships: Forming strategic partnerships that enhance the ecosystem and bring tangible benefits.

The bottom line: The lesson here is clear: flashy marketing campaigns may grab attention, but sustainable growth in the Web3 space comes from strategic, value-driven initiatives. Despite the scrutiny, DOT has risen 5% since the report's release, indicating a potential positive reception from the market.

Looking forward: Polkadot continues to navigate the balance between spending and growth, with community-led decision-making at its core. The upcoming years will determine if these marketing investments pay off, potentially setting a precedent for other blockchain projects. Here's to smarter spending and real impact.