Vroom's Expectancy Theory states that behaviour results from conscious choices among alternatives whose purpose is to maximize pleasure and to minimize pain. Vroom proposed that effort, performance & motivation are linked with each other. He used three variables and proved his theory that outcome is directly proportional to the effort:
- Expectancy: performance is proportional to the effort
- Instrumentality: outcome is proportional to the performance
- Valence: reward is proportional to the outcome
One application of the theory is in community building, all the participants work together to achieve a common goal. Each one of them gets rewarded in proportion to their contribution and also there is a bonus on completion of the goal.
In the crypto space most of the projects follow a top-down approach, the apex team has the decision making rights and the vision is confined to a tiny small group. This inhibits large-scale scalability and acceptance, the company ends up spending a lot of money on breaking the inertia and recruiting new customers. In this traditional approach cost of acquisition is high which delays the break even of the project.
Broadly there are three types of projects:
- Consumer Based: The builder builds the product for the consumer, the stickiness of the consumer is not guaranteed as he doesn't have his skin in the game. Eg: Kickstarter
- Stakeholder Based: Builder builds the product for stakeholders which markets it to consumers. Users may or may not actively use the product as the long term incentive to use it is not there. Eg: Coinlist
- User-Stakeholder Based: Builder, Stakeholder, Consumer, User all are part of one community. Products are built for consumption by the community. Eg: Freehold
Freehold is a User-Stakeholder community driven project, it empowers the community to be a part of the bigger goal, the success of the project. This is analogous to a dairy cooperative organization where the farmers contribute by milking dairy cattle, earn by selling the milk to the processor, own the voting rights in proportion to their shareholdings and also are the final consumers of the processed milk products.
The Freehold model rewards hodlers who take an active role in educating, building, and growing within their community, and is designed so technical and non-technical holders can become real stakeholders in the rise of a movement. Freehold communities will be built around contributors who hodl cryptocurrencies like Bitcoin (BTC), Stacks (STX), and others.
The last few decades saw engineers and marketers as founders, enterprises were largely driven by a single man’s goal to be successful and rich where the workers' contribution was very transactional. The awareness has increased and more people are gunning for financial independence, this decade will see the rise of community driven organizations, where each participant will be an owner of outcome & reward.
Industry veterans have started to believe that BTC is a much better store of value than any other asset in the world, be it gold, property or any other currency. With BTC mooning to ATH you must have wondered that you missed the bus, right? Is it too late to participate now? The answer is a big NO! We have just started to build Utopia and there is a lot to do. Enroll today and lend a helping hand: https://www.joinfreehold.com/
