The world of Web3 is a dynamic and ever-evolving landscape, where innovation and disruption are the norm. Recently, a thought-provoking thread on X (formerly Twitter) sparked a conversation about the role of indie developers in this space, particularly around the debate of focusing on revenue versus growth. Let's dive into this discussion and explore its implications for the future of Web3.

The Spark of the Debate

The thread, initiated by goingonchain, quotes a post from The Rollup featuring insights from Haseeb Qureshi, a prominent figure in the crypto space. Qureshi's statement, "If your focus is entirely on revenue, what that means is I don't think you're going to grow," has ignited a discussion about the priorities of indie developers in Web3.

Web2 Lessons: Growth First, Revenue Later

goingonchain reflects on their experience in a Web2 startup, where venture capitalists (VCs) often advised founders to prioritize growth over revenue. The mantra was clear: "get the traffic, get the users, build the funnel, build the flywheel. If you have users, money will come." This approach, driven by the promise of future monetization through scale, has been a cornerstone of traditional startup culture.

However, the landscape is shifting. The rise of indie developers, like yongfook with Bannerbear, showcases a different path. These creators focus on building sustainable revenue streams from the outset, often achieving decent Monthly Recurring Revenue (MRR) without the need for massive user bases or VC funding.

Web3's Unique Challenges

The question arises: will Web3 follow a similar trajectory? Can indie devs in Web3 build products that generate revenue without launching tokens or relying on speculative growth? This is a critical consideration, especially given the unique challenges of the Web3 space.

Unlike Web2, where ad revenue and subscription models are well-established, Web3's monetization strategies are still evolving. Play-to-earn (P2E) models, NFT sales, and decentralized finance (DeFi) integrations offer new avenues, but they also come with volatility and regulatory uncertainties. For indie developers, navigating this terrain requires a delicate balance between innovation and sustainability.

The Role of Venture Capital

Venture capital plays a significant role in shaping the priorities of startups, whether in Web2 or Web3. VCs often push for aggressive growth to justify their investments, sometimes at the expense of immediate revenue. However, as blockchain-founders.io points out, recurring revenue models like MRR are crucial for long-term stability in Web3. This tension between growth and revenue is at the heart of the debate.

Implications for Indie Devs

For indie developers in Web3, the choice between focusing on revenue or growth is not just a strategic decision but a philosophical one. Building a product with a clear revenue model from the start can provide financial independence and reduce reliance on external funding. On the other hand, prioritizing growth might open doors to larger markets and eventual profitability, albeit with higher risks.

The thread suggests a potential shift towards revenue-focused models in Web3, mirroring the indie maker movement in Web2. As medium.com highlights, achieving significant MRR is possible with the right approach, even for solo creators. This could empower a new generation of Web3 builders who value sustainability over speculative growth.

The Future of Web3 Development

The debate is not just about revenue versus growth; it's about the future of Web3 itself. Will it become a space dominated by VC-backed giants, or will it foster a thriving ecosystem of indie developers? The answer lies in the choices made by creators today.

As gam3s.gg notes, indie studios are poised to play a vital role in the growth of Web3, particularly in gaming. Their ability to innovate without the pressure of massive funding could lead to more diverse and user-centric products. However, this requires a mindset shift towards valuing revenue as a measure of success, not just growth.

Conclusion

The revenue vs. growth debate in Web3 is more than a theoretical discussion; it's a roadmap for the future of blockchain technology. For indie developers, the path forward involves balancing innovation with sustainability, leveraging new monetization models, and perhaps most importantly, believing in the value of their creations beyond speculative metrics.

As the Web3 space continues to evolve, the insights from this thread remind us that the true power of blockchain lies in its ability to empower creators. Whether through revenue-focused models or growth-driven strategies, the goal remains the same: to build a decentralized future that benefits everyone involved.

What do you think? Should indie devs in Web3 prioritize revenue or growth? Share your thoughts in the comments below!