Web3 Game Breakdowns — The Labor Effect

Web3 innovations have ushered in a new wave of development, characterized by building in the open, transparency, and a commitment to the principles of open source methodology. This approach not only resonates with the ideals of the Web3 community but also brings tangible business value.

Today, we explore how the labor effect, also known as the input effect, in Web3 development contributes to happier users and perceived product value increases.

The Labor Effect

The labor effect refers to the increased appreciation and value users place on a product when they can see and understand the effort and skill involved in its creation. This effect is particularly pronounced in the Web3 space due to the inherent transparency and collaborative nature of the development process. The concept is akin to what behavioral economists and psychologists refer to as the “IKEA effect,” where people value products more when they have put effort into assembling them themselves.

You will also notice this effect in bars and restaurants that prepare in the open. The mere fact that you have watched the labor that goes into the preparation leads to you appreciating the meal or drink.

Open Source Development

In the Web3 ecosystem, much of the development work is open source. Users can see the code and art that go into smart contracts and feature development. This visibility fosters a deeper appreciation for the complexities and efforts involved. When players can examine and query the code, they gain confidence in the security and reliability of the platform. This transparency not only promotes trust but also encourages contributions from the community, enhancing the overall quality of the project.

Take our Sunflower Land Github as an example.

The project’s GitHub repository sees over 20 commits every day and up to 5 releases daily. This high level of activity showcases the ongoing dedication and hard work of the development team. Our players see these figures and naturally it leads to a greater appreciation of the game.

When users can see this constant stream of updates, they appreciate the relentless effort to improve and expand the platform. It makes the product feel more dynamic and alive, leading to a higher perceived value.

Proposals

Decentralized Autonomous Organizations (DAOs) embody the labor effect by allowing community members to see and participate in the proposal and decision-making processes. In Sunflower Land, proposals can attract contributions and comments from over 70 participants. This level of engagement highlights the collective effort and thoughtfulness invested in shaping the platform.

https://github.com/sunflower-land/sunflower-land/discussions/4010

By the time a consensus is reached, players know that blood sweat and tears have gone into the game design — this once again promotes satisfaction with the final outcome.

Community Management

The labor effect extends to community management as well. Teams that actively engage with their community on platforms like Twitter and Discord, sharing insights into the building process, promote a sense of inclusion and transparency. Twitch streaming development sessions and other behind-the-scenes activities provide users with a firsthand look at the hard work and dedication of the team.

Sunflower Land players are familar with the constant messages from team members they see throughout the channels. This presence signals the team is working tirelessly towards improving the project.

Rapid Bug Fixes

When a bug arises, the quick and transparent response from developers further reinforces the labor effect. Users see the team actively addressing issues, which leads to higher satisfaction and trust in the platform. This active presence and responsiveness contribute to a more positive user experience.

Conclusion

The labor effect, or input effect, in Web3 development demonstrates that transparency and open development are more than just virtue signaling. They lead to real business value by creating happier users and increasing the perceived value of the product.

When building in Web3, it is crucial that all members of your team operate in the open. At Sunflower Land we are open sourcing more aspects of the business and finding great results.

By embracing open source principles, fostering active community engagement, and maintaining transparency in development processes, Web3 projects can build stronger, more valued, and trusted platforms. The labor effect not only enhances user satisfaction but also drives the long-term success of Web3 innovations