Web3 Capital Market: Opportunities and Challenges

As the crypto market experiences multiple cycles, with the emergence of crypto-friendly governments in the US, the global Web3 investment ecosystem is reaching a significant turning point.

According to the latest data from Galaxy Research, in Q3 2024, the Web3 sector completed 478 investment deals with a total investment of $2.4 billion. Traditional venture capital, with a $2 trillion funding pool, has begun to recognize Web3's transformative potential. Currently, less than 1% of funds are allocated to crypto projects - while seemingly insignificant, this represents something more important - the early stages of a fundamental shift in the capital market's perspective on blockchain technology and its potential. This transformation is particularly evident in the increasing maturity of early-stage investments, which now account for 85% of total financing. Market valuations have found a more sustainable equilibrium, with median valuations stabilizing around $23.8 million - a figure that demonstrates both rationality and room for growth. Institutional interest continues to deepen, especially in foundational infrastructure projects supporting the next wave of Web3 innovation.

Examining the current Web3 investment ecosystem reveals several core pain points. First and foremost is the decision-making efficiency issue. The traditional venture capital model, born in the internet era, with its lengthy decision chains and complex approval processes, is misaligned with Web3's rapid iteration pace. Highly centralized decision-making authority not only creates efficiency bottlenecks but also constrains the development space for innovative projects. Currently, 56% of total investment funds flow to US-based companies, this geographical concentration not only artificially limits innovation opportunities but also makes it difficult for many highly potential global projects to find suitable investors.

More challenging is the disconnect between investors and communities. In the Web3 ecosystem, communities are not just user groups but key cornerstones of project success. However, traditional investment models often view community building as supplementary rather than a core element of project development. This cognitive bias leads many projects to struggle with building and maintaining active communities after securing funding. The actual user voices that ultimately determine project success are often marginalized in investment decisions.

Capital efficiency issues cannot be ignored either. Traditional investment models tend to lock up capital long-term, which is like putting shackles on innovation in the Web3 ecosystem that emphasizes flexibility and rapid iteration. The lack of efficient price discovery mechanisms, coupled with limited secondary market options, further exacerbates the inability of capital to flow effectively to where it's most needed.

SYNBO: Reshaping the Capital Market

It was against this backdrop that SYNBO emerged in April 2023. This new generation decentralized venture capital protocol is not simply a technological innovation, but a rethinking of the Web3 investment paradigm. Through the innovative "Consensus-Self-Custody" model, SYNBO aims to restructure the investment decision-making process, improving efficiency while ensuring decentralized decision-making and community participation.

Since its launch in April 2023, SYNBO's development has received broad support from various ecosystem participants. Core members of LABs, early community partners, and strategic investors have invested nearly $5 million to support project development. These funds will be fully utilized for protocol development, ecosystem building, and global market expansion. With community funding support, SYNBO remains committed to its revolutionary consensus mechanism, dedicated to challenging traditional venture capital's dominance in the decentralized capital market and creating a new investment paradigm.

At this crucial moment when the Web3 investment ecosystem urgently needs breakthrough innovations, SYNBO's emergence undoubtedly carries special historical significance. This innovative protocol not only provides the industry with a new investment decision-making paradigm but also pioneers a consensus-based, transparent, and efficient capital allocation mechanism. As more institutions and individuals recognize the limitations of traditional investment models, innovative solutions like SYNBO will play an increasingly important role.

Technical Architecture Innovation

SYNBO's technical innovation design is built upon three core mechanisms, each aimed at specifically addressing particular pain points of traditional investment models.

• Position-of-Proof (PoP) mechanism redefines the investment decision-making process. Traditional investment decisions often rely on closed investment committees, with opaque processes and low efficiency. The PoP mechanism is designed to create a dynamic consensus market, enabling efficient investment decisions while ensuring sufficient market participation through a 72-hour consensus cycle. Under this mechanism, Alpha Brokers participate in decision-making by staking Position Tokens, with their interests directly linked to decision outcomes, ensuring prudent and responsible decision-making.

• Community Consensus Offering (CCO) model is a revolutionary innovation in token issuance design. Unlike traditional ICO's one-time fundraising model, CCO establishes a complete consensus-building system. Through carefully designed incentive mechanisms, CCO aims to align the interests of early investors with long-term community members. This alignment is not simply profit-sharing but ensures all participants are committed to the project's long-term success through systematic mechanism design.

• Position Tokens & Yield Tokens: The dual-token economic model provides a stable economic foundation for the entire ecosystem. Position Tokens, as the basis for consensus decision-making, serve not only as voting right carriers but also as important value capture tools. Yield Tokens provide stable revenue channels for liquidity providers while ensuring asset security through self-custody mechanisms. This dual-token design meets the needs of different participants while maintaining the ecosystem's economic balance.

Operational Mechanism Design

SYNBO's operational innovation primarily manifests in the design of the community capital pool and consensus matching system. The community capital pool introduces innovative liquidity management mechanisms where assets provided by Beta Miners remain in a fully self-custodial state with immediate rigid redemption capabilities. This design ensures both fund security and capital usage efficiency maximization. Through dynamically adjusted reward mechanisms, the community capital pool can flexibly adapt to market demands, ensuring sufficient liquidity supply while avoiding idle capital waste.

The consensus matching system design redefines relationships between project teams, investors, and communities. Through establishing efficient connection channels, the system quickly identifies and matches quality projects with suitable investors. More importantly, this matching isn't simply fund connection but is based on deep value recognition and strategic synergy. The system creates a sustainable project growth environment by converting active participants into project agents and consensus holders.

Application Scenario Design

SYNBO's application scenarios cover multiple areas including traditional financing, fair launch, and Real World Asset (RWA) tokenization. In traditional financing, SYNBO ensures financing processes align closely with project development goals through Position-of-Proof mechanisms and CCO models. Project teams can obtain more reasonable valuations through dynamic pricing mechanisms while ensuring early investors' interests are fully protected.

SYNBO's innovation is particularly significant in fair launch scenarios. Through scientifically designed token distribution mechanisms and transparent issuance rules, it truly achieves decentralized and community-driven token distribution. This mechanism not only ensures issuance fairness but more importantly establishes a sustainable value creation and distribution system.

Real World Asset (RWA) tokenization is another important direction SYNBO is exploring. By providing complete solutions, SYNBO will help traditional assets achieve digital transformation. Transparent valuation frameworks and efficient price discovery mechanisms enable traditional assets to seamlessly integrate into the digital economy system, creating new value spaces for asset holders.

Project Development and Future Strategy

In its deep cultivation of the Web3 investment field, SYNBO Labs has reached important milestones. Recently, the project has undergone nearly three months of comprehensive technical verification and functional testing on the Sepolia testnet, with system stability and performance showing good results. The upcoming mainnet Alpha version will fully support CCO business functions, marking SYNBO's crucial step in the decentralized investment protocol field.

Since its launch in April 2023, SYNBO has aimed at revolutionizing the community capital model, dedicated to challenging traditional venture capital's dominance in the decentralized capital market. Through nearly two years of development, the project has demonstrated strong innovative vitality and market potential.

Research & Value Creation

SYNBO Labs is actively expanding its influence in industry research. The project produces professional industry research reports monthly, covering market trend analysis, technology innovation tracking, and investment opportunity insights. This initiative not only demonstrates SYNBO's deep involvement in the "investment+" field but also shows its determination to continuously create value for community members. Through high-quality research content output, SYNBO is becoming an important bridge connecting investors, project teams, and markets.

Product Security & User Experience Optimization

SYNBO Labs consistently prioritizes product security and user experience. Regarding product security, the team is fully advancing pre-deployment preparations for the Alpha version, with particular emphasis on system security review. Through introducing multiple security mechanisms and strict code audit processes, the team ensures system stability and absolute security of user assets.

In terms of user experience optimization, the team adopts a gradual iteration development strategy, continuously improving user experience while ensuring protocol security. Currently, the Web version has completed basic adaptive layout design, supporting mobile devices with different screen sizes, ensuring convenient access for mobile users. For higher mobile user demands, the team plans to officially launch independent mobile application services after core business operations stabilize and mature, providing users with a more complete experience.

Community Incentives and Ecosystem Development

After product upgrades, SYNBO will launch a series of testnet reward activities to promote community participation and ecosystem development. As a decentralized capital protocol, SYNBO has designed a comprehensive token economic model to support sustainable ecosystem development. In the token allocation plan, up to 72% is reserved for community incentives; 13% will be used for early community ecosystem, 40% will support multi-chain deployment liquidity mining, and 19% serves as community foundation reserves for continuous ecosystem development, risk management, and system sustainable growth - fully demonstrating the project's emphasis on community value.

Currently, community incentive activities will develop across multiple dimensions: first through social media interaction tasks, encouraging users to actively participate in SYNBO's various social platform activities through carefully designed task mechanisms, strengthening community cohesion; second through testnet experience tasks, inviting users to deeply participate in product testing and provide valuable feedback. Additionally, the project will deploy liquidity mining plans through various forms including Farming to ensure healthy ecosystem development.

To ensure community members don't miss important opportunities, SYNBO will promptly release latest updates and participation opportunities through official channels, including community groups and the official website. This open and transparent community communication approach reflects SYNBO's emphasis on community building.

Ecosystem Synergy & Value Creation

SYNBO's ecosystem building strategy focuses on long-term value creation. Through the organic combination of research empowerment, product innovation, and community incentives, SYNBO is building a multi-layered, sustainable ecosystem. Research reports provide professional insights for the community, product upgrades ensure user experience, while community incentives maintain ecosystem vitality - these three dimensions support each other, jointly promoting ecosystem development.

Conclusion and Outlook

The Web3 investment field is at a critical transformation period. As the market gradually matures, innovation in investment models has become an unavoidable topic. The emergence of new-generation decentralized investment protocols like SYNBO brings new thinking directions for the industry.

Through the organic combination of technological innovation, community drive, and economic incentives, decentralized investment is exploring a completely new development path. From the innovation of investment decision mechanisms to the reconstruction of value distribution systems, to the sustainable development of the ecological environment, these attempts are accumulating valuable experience for the entire industry. Notably, SYNBO's innovative practices in Position-of-Proof (PoP) mechanism and Community Consensus Offering (CCO) model demonstrate the possibility of transforming concepts into reality.

In this era of transformation, project teams expect more efficient financing channels, investors desire more transparent decision-making processes, and community members hope to participate more deeply in value creation. Through innovative protocols like SYNBO, we see a possible future picture - a more open, efficient, and transparent investment ecosystem is taking shape.

As technology continues to advance and markets continue to evolve, the form of decentralized investment will inevitably undergo new changes. However, regardless of how forms change, the core principles of returning to essence, serving the real economy, and creating value remain constant. In this field full of opportunities and challenges, SYNBO's exploration may provide valuable insights for the entire industry. These innovative practices will ultimately push the Web3 investment ecosystem toward a more mature direction.

Synbo Protocol: Revolutionizing Venture Capital

Empowering Capital for Freedom, Efficiency, and Fairness

Synbo Protocol is an innovative underlying protocol for decentralized venture capital, committed to transforming the investment landscape. By leveraging the principles of decentralization, Synbo ensures a fair, efficient, and transparent investment process that benefits both investors and startups.

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