Web3 must become invisible to achieve mainstream adoption, according to Farokh Sarmad, President of Rug Radio, Decrypt, and Myriad Markets. He contends that while utility is important, social and emotional bonding are crucial for the longevity of digital products, including NFTs.
Sarmad highlighted that NFTs currently offer on-chain provenance, ensuring authenticity and perpetual royalties for digital art. However, he believes the NFT market has reached a ceiling and requires evolution beyond current cultural trends and utility.
Drawing parallels to Disney's success, Sarmad emphasized that emotional connections with characters drive consumer loyalty and brand success. He stated that this emotional connection is the missing evergreen layer for NFTs, essential for user retention and differentiating projects in a crowded market.
Looking ahead, new digital products will focus on enhancing social layers within gaming and prediction markets. Sarmad also addressed challenges in Decentralized Autonomous Organizations (DAOs), noting that too many voices can impede progress and decision-making, underscoring the need for effective leadership.