Launching a product is never easy—how do you attract users and build the network effects that fuel growth? In Web2, companies such as Amazon and Facebook rely on traditional go-to-market (GTM) strategies, investing heavily in sales and marketing. But Web3 is rewriting the playbook.

With decentralized technologies and tokens, users become owners through models such as DAOs. This shift demands new Web3 Go-to-market strategies, focusing on community-driven growth and innovative success metrics. In this article, we’ll explore how Web3 is transforming traditional GTM models and share actionable insights for brands aiming to succeed in this evolving space.

Web3 GTM strategies are characterized by a shift toward community involvement and a focus on product-led growth

What are Web3 Go-to-market strategies?

GTM, or Go-to-Market, is the process of launching a new product or service. It involves identifying your target audience, crafting a tailored marketing strategy, and executing it effectively.

In the Web2 era, brands invested heavily in sales and marketing to attract and retain users, leveraging vast amounts of user data to tighten their grip. This model predominantly benefited the platforms, leaving users with minimal rewards. The user acquisition funnel was central to Web2 Go-to-market strategies, guiding potential users through stages—awareness, interest, conversion, and retention. Success was measured by metrics such as lead conversion rates, click-through rates, and revenue per customer.

The Basic of User Acquisition Funnel

Web3 transforms the GTM process with token incentives, solving the cold-start problem in a whole new way. Instead of relying on hefty marketing budgets, Web3 projects use tokens to attract early users, rewarding them for their contributions. Instead of paying publishers and ad companies, Web3 projects cut the middlemen and reward users directly. Early adopters often evolve into evangelists, spreading the word and driving organic growth. Web3 Go-to-market strategies transfer control from corporations to communities, with decision-making and value creation fueled by collective input. Tokens play a pivotal role in motivating users and fostering collaboration.

5 Key Elements of Web3 Go-to-market strategy

Take Compound, for example—by rewarding lenders and borrowers with COMP tokens through a liquidity mining program, the protocol's Total Value Locked (TVL) in Compound surged from $100M to $600M after launch. This token-based model allows users to become a more powerful driver of growth than sales teams in Web2.

Key Difference: In Web2, GTM is all about acquiring customers through sales and marketing. In Web3, the scope widens to include developers, investors, and the community itself, making roles such as community management critical compared to traditional sales efforts.

The Web3 Go-to-market strategies matrix

Examples of Web3 Go-to-market strategy matrix 

For Web3 organizations, go-to-market (GTM) strategies depend on where they fall in the matrix of organizational structure (centralized vs. decentralized) and economic incentives (no token vs. token). Each quadrant—from traditional Web2 tactics to advanced Web3 methods—requires distinct approaches.

A. Decentralized with token

In the upper right quadrant, decentralized Web3 organizations leverage innovative GTM strategies. These projects, while often starting with a core team, use tokenomics to attract new members, reward contributors, and align incentives. Unlike Web2 companies, which begin with a product, Web3 organizations prioritize purpose and community. They blur the lines between owner, shareholder, and user through clear missions and strong engagement.

Success in tokenized decentralization depends on a well-defined mission, an active community, and aligned governance

GTM Motions for Decentralized Applications

Decentralized applications (dApps) span multiple use cases such as DeFi, NFTs, social networks, and gaming.

The Basics of Web3 Models

1. Decentralized Finance (DeFi) DAOs

DeFi apps such as Uniswap and MakerDAO use unique GTM strategies. Initially started by centralized teams, DeFi projects decentralize to enhance security and distribute control via governance tokens and DAOs.

Steps to Decentralization:

• Issue governance tokens.

• Launch a DAO for protocol management.

• Transition control to the DAO.

These DAOs may operate digitally or use multi-signature wallets and nonprofit foundations for development. The original development team often continues as contributors, adding new services and products.

Examples:

• MakerDAO: Launched in 2015, MakerDAO’s Dai stablecoin facilitates fast, low-cost transactions with a stable value. Their GTM strategy includes:

  • Listing on exchanges and distributing tokens to the community.

  • Integrating into wallets and apps.

Initially driven by traditional business development, MakerDAO now relies on a sub-DAO for managing partnerships and integrations. Its open-source nature allows developers to integrate its service permisionlessly.

• Uniswap: Originally centralized, Uniswap is now governed by the Uniswap DAO, with the UNI token holders in control. Uniswap Labs offers one interface, while various developers contribute to the ecosystem.

Web3 Go-to-market Metrics for DeFi DAOs:

• Total Value Locked (TVL): Tracks assets engaged in the protocol.

• Unique Token Holders: Measures token distribution and engagement.

• Community Engagement: Assesses activity and sentiment within the DAO.

• Developer Activity: Reflects contributions to the ecosystem.

• Integrations: Evaluate the protocol’s connections with other services.

Examples of Web3 Go-to-Market Metrics for DeFi DAOs

2. Social, Culture, and Art DAOs

These DAOs focus on community-driven goals, often starting with a shared vision rather than a predefined roadmap. Web3 DAOs grow by attracting members who align with their purpose, with execution evolving.

Web3 Go-to-market strategy for Social DAOs:

• Purpose-Driven Engagement: Attracting members who align with the vision.

• Organic Growth: Driven by community-led initiatives.

• Token-Gated Access: Managing membership through tokens, such as Friends with Benefits (FWB), which evolved from a token-gated Discord into a community-driven events app.

Examples:

• ConstitutionDAO: Raised $47M from a community eager to purchase a U.S. Constitution copy. Its success stemmed from purpose and engagement, even without a token or roadmap.

• Krause House: Aims to buy an NBA team and innovate fan governance, shifting the model for fan involvement in sports.

• LinksDAO: Focuses on building a virtual country club for golf enthusiasts.

• PleasrDAO: Collects culturally significant NFTs, fostering community around art and heritage.

Web3 Go-to-market Metrics for Social DAOs:

• Community Engagement: Activity within platforms such as Discord, participation in governance, and community calls.

• Work Output: Projects completed by community members.

• Relationship Building: Strength of connections and trust within the community.

Examples of Web3 Go-to-Market Metrics for Social DAOs

3. Game DAOs

Web3 games introduce two key innovations: blockchain-native assets and player stakeholding. Players have a say in governance, unlike traditional web2 games with closed economies.

Web3 Go-to-Market Strategy for Game DAOs:

• Platform Distribution: Launching the game on blockchain platforms.

• Player Referrals: Leveraging existing players to attract new users.

• Guild Partnerships: Collaborating with guilds such as Yield Guild Games (YGG) to offer asset loans to new players.

Key Guild Assessment Criteria:

• Game Quality: User experience and gameplay.

• Community Strength: Engagement levels within the player base.

• Economic Fairness: Transparency of the in-game economy.

Example: Loot - This game started with content (NFTs known as Loot bags) rather than gameplay. Loot provided a creative prompt, inspiring the community to build derivative projects, such as analytics tools, art, and new games. The game grew due to the idea and community engagement, not just the existing product.

Web3 Go-to-market Metrics for Game DAOs:

• Number of Derivatives: Tracks projects created by the community using in-game assets.

• Community Engagement: Participation within the game’s ecosystem.

• Economic Health: Evaluate balance and fairness in the game’s economy.

Examples of Web3 Go-to-Market Metrics for Game DAOs

GTM motions for Layer 1 blockchains and other protocols

Layer 1 blockchains (e.g., Ethereum, Solana, Avalanche, Celo) form the foundational infrastructure for decentralized applications (dApps). To grow and thrive, their go-to-market strategies focus on several key areas:

• Developer Adoption: Providing comprehensive tools, documentation, and support to attract developers. Success is measured by the number of dApps and projects being built on the blockchain.

• Ecosystem Growth: Expanding the ecosystem by integrating with other technologies and platforms, while cultivating a vibrant community of users and developers, drives long-term adoption.

• Partnerships: Strategic alliances with projects, enterprises, and institutions help enhance the blockchain's use cases and extend its reach.

• Incentives: Offering grants, bounties, and rewards to encourage development on the blockchain helps spark innovation and create a robust ecosystem.

Layer 2 solutions, such as Optimistic rollups and Zk-rollups, help Layer 1 blockchains scale by processing transactions offchain and settling them onchain. Their growth strategies focus on:

• Integration with Layer 1: Seamless integration with Layer 1 networks, such as Ethereum. This often involves collaboration with the Layer 1 community and ensuring compatibility for developers.

• User Adoption: Layer 2 solutions attract users by offering lower transaction fees, faster processing, and greater scalability. Key metrics include transaction volume and user activity on the Layer 2 network.

• Developer Engagement: Encouraging developers to build and deploy applications on Layer 2 networks is essential. Success is gauged by the number of dApps built and the quality of the tools provided to developers.

• Tokenomics: Where applicable, implementing a token model that aligns incentives for users and developers helps drive ecosystem growth and sustainability.

Protocols on Layer 1 and Layer 2

Protocols such as Uniswap, which operate across Layer 1 and Layer 2 networks (e.g., Ethereum, Optimism, Polygon), adopt specific growth strategies:

• Application Development: Expanding the protocol’s capabilities by supporting a wide range of applications and integrations increases its utility and appeal.

• Community Building: Engaging the community through governance, incentives, and contributions is important. Metrics such as community size, engagement, and participation in governance reflect success.

• Forks and Replications: Embracing forks can be a sign of success, indicating the protocol's influence. Tracking forks and the success of derivative projects can provide valuable insights into the protocol’s overall impact.

In addition to Web3-specific approaches, Layer 1 and Layer 2 networks may blend Web2 and Web3 Go-to-market strategies for a more comprehensive approach:

• Traditional Marketing and Outreach: Leveraging Web2 tactics such as social media campaigns, press releases, and events can help reach a broader audience beyond the core Web3 community.

• User Experience Focus: Prioritizing user-friendly design and interface improvements makes Web3 technologies more accessible to non-technical users, helping ease adoption.

• Education and Awareness: Providing educational content and workshops ensures that both users and developers can understand and effectively use the technology.

Examples of Web3 Go-to-Market Metrics for Layer 1 blockchains and other protocols

By blending Web2 and Web3 Go-to-market strategies, projects can achieve wider adoption while maintaining the core values of decentralization and community-driven growth. As we explore hybrid models, builders should consider the balance of these tactics in their go-to-market approach.

B. Centralized and no token: The web2-web3 hybrid

In the lower left quadrant, companies with centralized teams and no tokens often act as gateways to Web3 infrastructure. Their go-to-market strategies frequently resemble Web2 approaches, especially in areas such as SaaS and marketplaces.

Software-as-a-service

Some companies in this quadrant utilize traditional SaaS models, such as Alchemy, which offers nodes-as-a-service with tiered subscription fees based on factors such as storage, node type, and request volume. Key go-to-market strategies include:

• Product-Led User Acquisition: Attracting users through free or freemium models, such as Alchemy's Supernode API for Ethereum. This allows users to experience the product firsthand, often leading to organic referrals.

• Channel-Led User Acquisition: Tailoring sales efforts to specific user segments (e.g., public vs. private sectors) with dedicated teams that understand and address their unique needs.

Developer-focused outreach—through documentation, events, and education—also plays a critical role in driving adoption within this space.

Examples of Web3 Go-to-Market Metrics for SaaS projects

Marketplaces and Exchanges

Companies in this quadrant often follow traditional marketplace and exchange models, such as OpenSea for NFTs and Coinbase for cryptocurrencies. These platforms generate revenue through transaction fees, similar to Web2 giants such as eBay and Amazon. Their key strategies include:

• Growing Listings and Users: Expanding the number of listings, increasing average transaction values, and growing the user base to boost transaction volume and enhance liquidity.

• Channel Distribution: Partnering with other platforms to increase visibility, similar to Amazon's affiliate program but with Web3 features. For example, OpenSea offers creators royalties on secondary sales through smart contracts and blockchain tracking.

This model allows creators to earn from secondary sales, effectively turning them into promoters of the marketplace.

Examples of Web3 Go-to-Market Metrics for Marketplaces and Exchanges

Core tactics for launching a Web3 Project

Examples of the common Web3 project launch funnel

Launching a Web3 project requires a combination of traditional tactics and innovative methods that cater to the decentralized ecosystem. Here are key Web3 Go-to-market strategies to ensure a successful launch:

Pre-Launch Community Building

Begin building your community before the official launch through social media, forums, and AMAs (Ask Me Anything sessions). Engage potential users early to generate excitement and collect feedback. Keep the momentum by sharing updates, behind-the-scenes content, and sneak peeks of upcoming features to sustain interest.

Token Launch Strategy

Select a fair launch model to avoid centralization and distribute tokens widely. This encourages early adoption and promotes community involvement. Plan your token launch in alignment with your project’s goals, using methods such as airdrops or presales to effectively reach your target audience.

Partnership Development

Form strategic partnerships with other Web3 projects, influencers, and platforms. Leverage their user base and credibility to enhance your project’s visibility. Look for collaboration opportunities on joint ventures or integrations that benefit both parties and expand your project’s ecosystem.

Open-Source Contributions

Encourage innovation by inviting open-source contributions. Offer incentives such as token rewards or community recognition to attract top talent. Create a collaborative environment where developers can contribute to and enhance your project’s growth.

Marketing and PR

Focus on community-driven marketing strategies using platforms such as Discord, Twitter, and Reddit to build strong relationships with your audience. While these approaches are critical, don’t overlook traditional marketing channels. Utilize PR, content marketing, and other methods to reach a broader audience.

Web3 Go-to-market strategy framework

So how to implement a Web3 go-to-market strategy? Let's learn about the basic Web3 Go-to-market strategy framework:

I. Pre-Launch Phase 

The focus here is on creating awareness and building credibility. Key tactics include:

• Market Intelligence: Identify the target audience, understand their pain points, and craft a compelling value proposition that highlights your product's unique benefits.

• Market Segmentation: Define your Ideal Customer Profile (ICP) and tailor messaging for various user personas. This ensures your message resonates across different audience segments.

• Competitive Analysis: Benchmark your product against competitors, identify similar audiences, and refine your value proposition based on this analysis.

• Content Distribution: Reach your audience through blogs, social media, and newsletters. Share educational content early on to build trust and generate anticipation.

• Partnerships: Establish strategic partnerships to extend your reach and showcase your product. Collaborate with brands that align with your values and objectives.

II. Launch Phase 

Starting three weeks before launch and lasting for around six weeks, the goal is to drive user adoption. Key tactics include:

• Announcement: Create a schedule for partnership announcements, milestone celebrations, and product launches across all channels.

• Engagement Campaigns: Use airdrops, quests, and challenges to incentivize user participation and build excitement around your product.

III. Post-Launch Phase 

Maximize reach and long-term impact by focusing on:

1. Data Analytics: Use both on-chain and Web2 tools to analyze user behavior, optimize features, and pinpoint areas for improvement.

2. Grants Program: Launch a grants program to encourage innovation and build trust within your ecosystem.

3. Developer Relations Campaign (DevRel): Engage developers with hackathons and educational events to promote adoption and inspire new applications.

In Web3 go-to-market strategies, success is typically measured by community engagement, token utility, and shared purpose, rather than solely by revenue and headcount. The distinction between Web2 and Web3 lies in their goals, growth metrics, and success indicators. To succeed, builders should begin with a clear mission, cultivate a community that resonates with that mission, and tailor their GTM strategies and incentives to fit the Web3 landscape. By adapting traditional models to the unique aspects of Web3, brands can effectively navigate and thrive in this evolving digital frontier.

Uncover actionable insights and engage your onchain users to accelerate go-to-market success with Formo

About Formo

Formo is a cutting-edge blockchain analytics tool that harnesss Web3 forms, Analytics, and Wallet Data Platform (WDP) to address key data challenges in the Web3 space. Designed specifically for Web3 startups, Formo streamlines the development of consumer crypto apps, allowing teams to focus less on analytics and more on building their products. 

Give Formo a try today: formo.so!