https://youtu.be/upLmNSTd8No


The purpose of the Mental Mining campaign today is to take the newly released article from yesterday (Blockzero, Simplified) and analyze the potential impact/opportunity of two of the Divisions: Blockzero Studio + Blockzero Accelerator

Through this, we hope to attain a better view of the opportunities + obstacles of each Division while also getting a sentiment check from the community on where Citizens would like to see resources focused.

Quick context on Studio vs. Accelerator

The Blockzero Studio is the development division of Blockzero. It is where we have built Flashstake, Dropzero, and AquaFi.

The Blockzero Accelerator is the growth division of Blockzero. It is where we help external projects with marketing, advisory, increasing engagement, strategy, hitting KPIs, etc). The vision of this Division is to be the Y Combinator of the decentralized world.

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When Blockzero initially started in late 2019, the momentum was definitely focused on the Accelerator side. This vision of the "Y Combinator of the decentralized world" and the concept of helping accelerate/grow projects resonated and still resonates with so many people to this day.

In just one month of announcing Blockzero (previously XIO Network), we had over 75 projects apply.  The demand was certainly there, but where we lacked was experience and resources.

Could we really expect to help other projects if we didn't first help ourselves? We needed to dive deeper into the weeds. We needed more resources. We needed to learn before we could advise.

Flash forward to 2020, the community identified an opportunity that would allow us to not only help other projects but build projects ourselves. The concept of the "Token Studio" was born. Six months later on New Years Day 2021, Flashstake was live.

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As of today, Blockzero is a lot of things to different people. Where we put our energy, resources, and most importantly --focus-- has never been more important.

The Mental Mining topic we are bringing to the community today to get feedback on these questions: 

  • As Citizens, where would you prefer we put our focus, energy, and resources: The Studio or the Accelerator?
  • Which Division do you get most excited about?
  • Which Division do you feel fits our strengths the best?
  • Which Division has the chance to make the most impact and add the most value to the industry?
  • Which are the pros and cons of each?

To clarify, we are no choosing to only do one or the other. Neither of these Divisions are stopping. Moreso, we are balancing resources.

Below are some quick my personal quick thoughts about both. I encourage anyone/everyone to challenge and add to these pros/cons as needed.
 

The Studio

The Studio has been a fun and rewarding journey. It has allowed us to go through the entire creation process from beginning to end and learn a hell of a lot along the way. It is not, however, without its own obstacles and downsides.

Pros:

  • Complete ownership over a project
  • Creative control and cohesiveness of the brand
  • Greater proportional token distributions than Accelerator projects
  • Looking for feedback for more pros/cons here

Cons:

  • The budget for payroll, resources and security is 4-5x higher than Accelerator.
  • The budget for the Studio keeps increasing as blockchain developers become more scarce.
  • We don't currently have a CTO-level person that leads this division. Makes building difficult at times.
  • Unpredictable technical obstacles and delays have been common
  • Looking for feedback for more pros/cons here

 

The Accelerator

The initial Accelerator we did in 2019 was fun as well but was very overwhelming at the time. This was at a time when the project was mainly run by myself and Austin. Now, Blockzero has over a dozen people working on the project on a daily basis.

Most recently, we opened back up the Accelerator program with the UMA project.  Despite Ethereum gas delays causing us to pause the final phase, this as well has been a fun experience and led to extremely positive feedback from the UMA team.

 

Pros:

  • Can scale much faster to 50-100 projects than the Studio
  • 4-5x less budget needed (Reminder, budget is paid in XIO).
  • Inherent cross-marketing benefits with each project we accelerate. Each project's community learns about Blockzero in the Acceleration process.
  • Looking for feedback for more pros/cons here

 

Cons:

  • Less ownership per project than Studio
  • Less creative control than the Studio
  • Dependent on finding/recruiting good projects
  • Looking for feedback for more pros/cons here

 

Let's Do Some Math

From a math perspective, if we had Vortex TVL as the north star, here are some examples of where we would be with Blockzero

Studio:  

  • $20M: If we did two projects a year with an average valuation of $10M
  • $150M: If we did three projects a year with an average valuation of $50M
  • $1B: If we did four projects a year with an average valuation of $250M

Of course, these estimates are extremely broad and hard to predict. Building projects is very boom or bust with not a lot of predictability.

 

Accelerator:

  • $3M: If we Accelerated 10 projects a year, received 3% of their holdings, and they had an average valuation of $10M
  • $625M: If we Accelerated 250 projects a year, received 5% of their holdings, and they had an average valuation of $50M
  • $8.75B: If we accelerated 500 projects per year, received 7% of their holdings, and they had an average valuation of $250M.

For perspective, YC currently does 600 startups per year and takes 7% of each project. The market cap of Ethereum alone is over $250B.

 

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The goal of this Mental Mining campaign, as always, is to have an open dialogue with our community and see where your passions and curiosities sit. In the comments, we are asking to share your thoughts on any/all of the below questions.

As Citizens, where would you prefer we put our focus, energy, and resources: The Studio or the Accelerator?

  • Which Division do you get most excited about?
  • Which Division do you feel fits our strengths the best?
  • Which Division has the chance to make the most impact and add the most value to the industry?
  • Which are the pros and cons of each?