Growth at the Intersection of Web3 x AI
By Paul Hsu, Founder and CEO, and Rizza Torres, Marketing Manager, Decasonic
2024 has been a defining year for the intersection of Web3 and AI, driven by technical breakthroughs, market innovations, institutional investor interest, community energy, and shifting consumer demand. For founders, this intersection represents both an opportunity and an imperative: those who embrace and strategically implement these technologies now are poised to differentiate themselves in frontier markets.
We are excited to launch our next monthly blog series focused on the intersection of Web3 and AI through relevant research and durable use cases, showcasing how AI agents, decentralized ownership, and intelligent data utilization are extending the Internet’s potential. With the anticipation of AI and crypto regulatory guidance post- US elections, this is an opportune moment for founders to plan their steps forward in the decentralized AI-Web3 space.
Why Web3 and AI Matters Now: The Power of Intersectional Innovation
The convergence of AI and Web3 is more than a trend—it’s creating a shift in digital infrastructure, applications and experiences, fundamentally altering how businesses operate, connect with consumers, and generate value. Blockchain’s integrity layer, combined with AI’s intelligence, enables applications and experiences that reshape business models, automate transactions, enable new interfaces, create new connections and personalize user experiences. Together, the intersection of Web3 and AI technologies drive new levels of personalized intelligence, economic access, and ultimately product differentiation for builders. This synergy is essential for founders aiming to stay competitive in an evolving digital market. (For an in-depth analysis, see EY and Forbes perspectives on AI-Web3 synergies.)
We see this powerful synergy in some of our portfolio companies. TestMachine, for example, leverages AI for blockchain security, boosting speed and reliability in Web3 code verification. Anomaly and Forum3 take AI’s engagement capabilities further, creating tokenized digital experiences where players own and actively shape their gaming environments. In gaming, Scenario leads the generative AI product adoption for Web3 and traditional game developers in their development process. This unique integration of AI and Web3 enables exponential innovation in secure, decentralized platforms, ushering in the next frontier of digital applications.
Core Opportunities at the Intersection of Web3 and AI
1. AI Agents as the New Interface Layer in Web3
AI agents are emerging as the next evolution of interfaces, powered by Web3’s decentralized, economic transfer and data-ownership features. For founders, AI agents can significantly enhance product interactivity and personalization, enabling automation of complex workflows and fostering deeper engagement. Our blog from December of 2023, “Why AI Agents are the Next Version of Applications,” explores how these agents open new possibilities for managing digital assets and integrating intelligent interactions directly into user experiences—an advantage founders can leverage to meet growing demands for personalization.
2. Tokenization as a Pathway for Sustainable Ecosystems
Blockchain scalability and tokenization have set the stage for founders to align incentives and build robust communities through token economies. Our Token Market Fit framework, an adaptation of product-market fit for Web3, focuses on how tokens can drive sustained engagement and loyalty.
3. AI-Enhanced Gaming and Immersive Experiences
AI’s role in Web3 gaming is rapidly evolving, offering founders opportunities to create more personalized and engaging gaming experiences. Anomaly, for example, uses AI within a social gaming context, where decentralized platforms leverage AI to create unique player experiences with tokenized incentives. For founders in entertainment and media, this model demonstrates the potential for long-term user retention and increased monetization through immersive experiences that offer players ownership and customization of assets.
4. Consumer Tokens and the AI-Web3 Market Map
Our Web3 and AI Market Map from October of 2023 reveals the potential of consumer tokens to enhance engagement, trust, and retention. Companies like Cupcake are pioneering gamified consumer tokens that bridge Web3, social media, and loyalty. This trend underscores a critical opportunity for founders: by using consumer tokens, they can build community-driven ecosystems, where user participation and brand loyalty drive network effects, increasing the appeal and durability of the platform.
Building for Mainstream Adoption: A Practical Roadmap for Founders
For Web3 and AI to achieve mainstream adoption, they must prioritize clear value, not over incumbent consumer experiences but also AI only experiences. Founders can capture this wave by designing experiences that meet consumers where they are, with intuitive and practical value propositions. Decasonic’s investment strategy centers on durable narratives that transcend cycles of hype, positioning our founders for long-term success. Relationships matter for responsible innovation.
Adaptability remains key to driving the next level of growth in this industry. Substance marketing is rooted in clarity, resilience, and long-term value. It showcases the tangible benefits of Web3 and AI applications, ensuring that mainstream audiences can grasp the significance and practicality of these technologies. From insights and investment strategy to partnerships with founders, at Decasonic, we focus on building Web3 and AI solutions that meet the highest standards of transparency, trust, and tangible value.
November Blog Series on AI and Web3: Key Insights for Founders
This month, our series will unpack themes central to the intersection of Web3 x AI. We hope this set of blog posts provides actionable insights for innovators building on this frontier, with practical takeaways for founders.
AI Agents and Consumer Tokens – How AI agents are elevating consumer token models, driving growth in new Web3 consumer experiences.
Worldchain Market Map – Worldchain is the leader in decentralized biometric identity, a foundation for Web3 and AI. A comprehensive look at Web3 and AI sectors on their recently announced WorldChain, identifying innovation product categories and leading trends.
AI Attention Tokens – Insights into how AI-powered attention metrics and token models can unlock new value streams, empowering founders to capture and retain user engagement.
Web3 x AI Market Map, 2024 – An update from our October 2023 market map, capturing the latest companies, innovations, and applications driving the Web3 and AI ecosystem forward, helping founders prioritize where to build category leadership
We invite you—founders, builders, and innovators—to join us. The intersection of Web3 and AI is here—let’s lead it forward, together.
The content of this material is strictly for informational and educational purposes and is not meant to constitute investment advice or a recommendation or a solicitation to buy or sell any asset or to make any financial decision. Nothing in these blog posts should be considered legal or tax advice. You should consult with your own professional advisor before making any financial decision. Decasonic offers no warranties on any content in the material posted in these blog posts, including that it is accurate, complete, or correct. The opinions expressed in these posts are those of the authors and do not necessarily reflect the views of Decasonic. Decasonic is not liable for any errors or omissions in the content of this newsletter or for any actions taken based on the information provided herein.
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