Capitalism is killing the soul of Web3 every day
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Capitalism is killing the soul of Web3 every day
The dream of true decentralization still exists, but for most people, it remains just a dream.
Navigating Web3 tides with focused insightsAuthor: hitesh.eth
Translation: Block unicorn
We have a digital planet: Web2 and Web3.
The Web3 planet is relatively new—it was originally built by pioneers who believed in decentralization, freedom, and self-governance. In its earliest days, it was a wild, unexplored land with no rulers, only builders.
But then bridges were built between Web2 and Web3. At first, only a few capitalists from Web2 arrived, drawn by the raw potential of this new world. They observed from the sidelines, analyzed its terrain, understood its rules, and identified the most valuable territories.
Bitcoin block space
The first wave of large-scale colonization began with Bitcoin—the most precious nation on the Web3 island. It was a scarce land with clear ownership, where power belonged to those who understood its fundamentals.
But once the first settlers secured their wealth, they began expanding. They saw that Web3 was much more than just Bitcoin. There were vast, unclaimed lands waiting to be shaped. Soon, they moved beyond Bitcoin, establishing new territories—Ethereum, Solana, Polkadot, and countless others.
As more land was discovered, the race to divide up new nations intensified. Initially, block space was scarce. The earliest blockchains operated under tight constraints—every transaction needed a spot, and space was limited. This scarcity gave block space immense value. Owning even a small piece meant having a seat in the new digital economy. But as competition grew, innovation followed.
ETH transaction visualization
New, more efficient ways of creating block space emerged. Layer 2 solutions, rollups, alt-chains—each brought vast amounts of new land to the Web3 planet. What was once rare became abundant.
Builders no longer fought over limited space; instead, they created endless new lands to meet growing settlement demands. But the flood of block space brought unintended consequences.
What was once precious became cheap. The cost of storing transactions—once a key economic force—plummeted. The promise was that cheap block space would attract millions of new settlers from Web2, but reality proved different.
People from Web2 hesitated.
They had heard stories of treasure seekers venturing into Web3, lured by promises of wealth, only to be devoured by predators. Some Web2 residents did migrate, attracted by tales of overnight riches.
They entered Web3 hoping to claim a place in the new economy. Many started by purchasing small plots of land—various tokens, each promising future value. They traded, speculated, built businesses, believing they were at the dawn of the next great revolution.
But they didn’t realize that Web3 had already been shaped by its earliest settlers and most powerful capitalists. The rules of the game weren’t written down, but those who controlled the land knew them well. As more people from Web2 migrated, they unknowingly walked into traps. The complexity of Web3 was daunting.
Too many new nations, too many different rules, and too many scams disguised as opportunities. Big players controlled the information flow, manipulated markets, inflated values, and pulled the rug out from under unsuspecting settlers.
The Web3 planet turned into a playground for those who knew how to extract wealth from the ignorant. Even though block space is now cheaper than ever, adoption remains slow. The dream of mass migration from Web2 to Web3 is fading.
New lands promised seamless user experiences, but they never matched the familiarity and convenience offered by Web2. Promises of quick incentives weren’t enough to lure people in—Web2 users saw too many peers get hurt.
They watched entire nations within Web3 rise and collapse overnight, saw fortunes gained and lost in an instant. Ordinary people hesitated, unable to see through the chaos. Yet amid the turmoil, a thriving trading market emerged.
Real estate in Web3—tokens—became the lifeblood of its economy. Everything was for sale. Each nation had its own properties, unique assets, and promises of future value. Trading floors stayed open endlessly, operating around the clock, driven by speculation, manipulation, and greed.
Some nations prospered temporarily, then faded as attention shifted. New lands were minted daily, sold to the highest bidder, then flipped short-term for profit. The cycle never stopped. And while settlers struggled, the true beneficiaries of Web3 thrived.
The bridge operators—exchanges—became gatekeepers, controlling the flow of assets between Web2 and Web3.
They profited every time someone entered or exited. Market makers—the hidden forces managing liquidity—ensured no trade went unnoticed, taking their cut from every transaction. Developers kept building, not necessarily for innovation, but to create more sellable land. And marketers? They wove narratives, crafted stories, and sold dreams to the next wave of hopeful settlers.
The dark side of Web3 is that it’s no longer truly decentralized. The early ideals of a free and open digital frontier have been replaced by the cold realities of capital. The game is rigged.
The same forces that dominate Web2 have also infiltrated Web3. They didn’t just settle—they reshaped the planet to serve their interests. Thus, the Web3 planet continues to expand, an endless frontier of digital land, speculation, and fleeting opportunities.
The dream of genuine decentralization still exists, but for most, it remains just a dream. Settlers keep coming, hoping to get rich, but in the end, most leave with less than they arrived with.
In the meantime, those who mastered the system continue extracting, building, and controlling, ensuring the planet remains shaped by their hands.
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