The Self-Reinforcing Growth Loop
From a business strategy perspective, the most powerful and defensible business models are built on a flywheel. This is a self-reinforcing loop where each component of the system positively impacts the others, creating unstoppable momentum. The Dolomite protocol, and the economy built around the $DOLO asset, is a perfect example of a powerful, three-stage flywheel.
A Breakdown of the Dolomite Flywheel
STAGE 1: SUPPORT FOR LONG TAIL ASSETS
The flywheel begins with Dolomite's core differentiator: its ability to support over 1,000 unique assets. This attracts the passionate and dedicated communities of hundreds of smaller, innovative projects who have no other venue to make their native assets productive. This is the initial injection of energy into the system.
STAGE 2: ATTRACTION OF DIVERSE LIQUIDITY
As these hundreds of communities join the @Dolomite io platform, they bring their capital with them, creating a deep and incredibly diverse pool of liquidity. This makes the platform more valuable and robust. The governance of this diverse market is the primary utility of the $DOLO digital asset.
STAGE 3: INCREASED UTILITY AND NETWORK EFFECTS
This deep and diverse pool of liquidity, in turn, makes Dolomite the most attractive platform for larger traders, developers, and other protocols to build on. This increases the protocol's fee revenue, which is governed by the $DOLO community, and further solidifies its position as the central money market for the entire long tail, creating an even stronger incentive for the next wave of assets to be listed, which starts the flywheel spinning even faster. ๐
