failure family

cold start and bootstrapping

36 claims across 24 works.

• missing-revenue-model: The two sources that finance Delaware's bundled package, franchise taxes and legal fees for local counsel, might not be as lucrative for a European Me
• Legacy capital formation shortfall: Given the advantages of ICOs, traditional regulated IPOs and venture capital funds increasingly fail to adequately capitalize crypto and legacy ventur
• Absent revenue to offset platform costs: Associated with the lack of an existing product is the inability of most crypto platforms to generate revenue to offset costs the way traditional busi
• newcomer entry barrier: As the system matures the power of experienced experts far outstrips that of new experts, which creates an entry problem in a platform where adjudicat
• no-revenue-runway: Because crypto platforms have no product and no revenue to offset costs, the funds they raise must typically last for the entire lifecycle of the plat
• single-area-development-failure: Blockchain use cases involve interdependent structures, so development of any one area alone cannot succeed without the simultaneous existence of mult
• missing-universal-use-case: Without a core use case other than the store of value provided by Bitcoin, decentralization technology is less likely to proliferate; banking, money t
• missing-killer-app: Without a core use case beyond Bitcoin's store of value function, decentralization technology is less likely to proliferate.
• Missing baseline infrastructure behind ICO promises: The 2018 ICO boom exposed a core limitation of blockchain technology: ICOs sold investors decentralized infrastructure products on the assumption that
• missing-core-use-case: Decentralization technology is unlikely to proliferate without a core use case beyond store of value; banking, money transmission, and triple entry ac
• attrition of blockchain for good projects: In a proprietary dataset of thirty three blockchain for good projects, the projects proliferated between 2013 and 2017 and peaked in 2017, and many of
• experience gap in immature markets: Immature markets such as the market for digital assets in 2020 often cannot attract the institutional investors and venture capitalists who have suffi
• no expertise network, no successful early stage investment: Early stage investing in digital assets is a relationships business, and without access to a network of core industry expertise early stage investment
• hype crowds out technical learning: Because the digital asset market has been so hype driven, technical experience has not added significantly to overall market development and maturity,
• missing incentive design for decentralized development: At the beginning of the 2020s no forum existed that could support truly decentralized software development with a sufficient incentive design.
• Missing Prerequisite Infrastructure: Decentralized legal infrastructure solutions were almost entirely missing in the early 2020s despite strong demand, because other prerequisite decentr
• infrastructure lag inhibits transformation: Technological transformation stalls until its supporting infrastructure exists: the digital transformation was inhibited until infrastructure was buil
• critical mass failure: The dominant failure of the open source model is that most projects never reach critical mass; only a small elite of projects attracts enough develope
• governance blocked by missing infrastructure: Without basic decentralized infrastructure products in place, on-chain governance of blockchains is not possible or is only limitedly possible, and th
• missing institutional preconditions: The decentralized economy cannot fully proliferate until it acquires the institutions ordinary commerce depends on, above all a secure and meaningful
• stablecoin chicken and egg: Stablecoin collateralization and a robust decentralized economy form a chicken and egg problem: a stablecoin cannot reduce its backing until a robust
• missing decentralized news and history institutions: The decentralized economy still lacks trustworthy open source decentralized institutions for recording and parsing history, reporting news and guiding
• Missing complementary institutions: A DAO will not be a genuinely profitable addition to the economy until decentralized versions of the legal system, the political system, the media, ba
• Partial institutional build-out: No profit-seeking decentralized organization can succeed against centralized competitors in the contemporary marketplace until all eight institutional
• Chicken and egg dependency: The stablecoin cannot be efficient until a robust decentralized economy already exists, producing a chicken and egg problem in which the required inst
• parasite on a dying host: Unless the Web3 vision builds at least the features and social advantages of the current political and legal systems into its economy, the decentraliz
• missing decentralized overhead institutions: Without decentralized versions of the services that overhead institutions provide, including justice, media, banking, underwriting, and insurance, DAO
• unqualified validator participation: Lack of validator expertise degraded the initial Casper testnet, with only around 85 percent of testnet nodes up to date and roughly 140 active machin
• Missing institutional layer for decentralized business: Decentralized money and decentralized contracts have been built, but decentralized business will not work until roughly eight further decentralized in
• Alternative funder idiosyncrasy: Alternative early round funding mechanisms are not necessarily more successful than VCs in early round technology investing, because they tend to act
• Inadequate alternative funding: Alternative early round funding methods frequently fail to provide adequate funding to fully launch a new company, and a significant number of tech st
• mutual-dependency-deadlock: Oracle DAOs and decentralized finance DAOs face a bootstrapping deadlock because each relies on the other for its very existence, a chicken and egg pr
• insufficient-ambition: Existing decentralized news efforts including WikiNews, the Decentralized News Network, and Steemit failed to gain wide adoption because they lacked a
• Reputation voting bootstrap deadlock: Reputation-based governance faces a chicken and egg problem: voting becomes more efficient once reputation is valuable, but reputation cannot become v
• governance-from-scratch-burden: Unlike corporate founders, who inherit a known governance template, DAO founders must build a new form of governance from nothing alongside their tech
• Missing Credential Tracking: Credential tracking is a necessary condition for Impact 3.0: any Impact 3.0 platform built without WEB3 credential tracking systems will encounter sig