3.5. Three-Sided Network Effects
Conceived with defensibility in mind from day one, Reitio's value flow resembles a self-reinforcing flywheel that will continuously strengthen as the protocol matures. Pioneering a three-sided network model, Reitio aligns the incentives of all three core participants of the protocol such that by acting in their own respective self-interest, it brings about greater benefits towards the health of Reitio's own network economy.
More 3D artists would mean more asset packs and templates on Reitio, which in turn would draw in more users since the platform now offers a greater degree of 3D asset customizability. As a byproduct of this surge in user base, more artists would now be compelled to showcase their skills on Reitio for exposure and financial gain, which would lead the platform to house an even more expansive 3D mesh library and attracting more users as a result.
The growing activity level on Reitio inadvertently attracts speculators to bid on the asset packs and templates of artists, those that might fetch a high use rate on the platform. The initial market inefficiency would result in more profit opportunities for speculators, which in turn would attract other speculators looking for arbitrage windows throughout the overall market. More speculators would cause the market to become more liquid, which makes it easier for artists preferring instant liquidity to cash out, but is not shortchanged on the fair value of their assets.
In summation, Reitio's organic “network effects” would provide its own network economy with an ever-increasing edge over potential imitators or forks down the road, while at the same time setting the stage towards the eventual goal of being a self-sustaining protocol in the long run.
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