solving harder financial problems that actually require decentralized systems.
Rethinking Web3 Narratives and Incentives
Liu also criticized earlier attempts to explain blockchain value through simplified slogans. The idea that users could simply own everything online failed to capture economic complexity. Moreover, it encouraged shallow product design. Many teams focused on storytelling rather than building functional markets.
She noted that venture funding often followed narratives instead of utility. Consequently, projects launched tokens to attract speculative liquidity rather than long-term users.
This cycle pushed prices higher without strengthening underlying systems. Over time, the industry built excess infrastructure that lacked clear demand.
Additionally, Liu argued that the promise of universal rewards misled participants. The belief that every online action should generate income distorted incentives. Instead of creating useful services, teams optimized for token appreciation. Significantly, this approach weakened trust once market conditions reversed.
Open Finance as the Core Opportunity
Despite criticism, Liu expressed confidence in blockchain’s long-term potential. She described open financial rails as the industry’s defining achievement. These systems allow capital to move globally without traditional barriers. Consequently, entrepreneurs can form markets in regions long excluded from financial networks.
Moreover, open finance enables new forms of capital formation. Individuals can participate directly in economic growth without centralized gatekeepers.
Liu connected this shift to greater personal agency and economic freedom. Hence, she framed financial infrastructure as a foundation for broader innovation.
In her view, the next phase requires discipline. Builders must prioritize systems that support liquidity, settlement, and risk management.
Additionally, narratives must follow functionality, not replace it. As markets mature, Liu suggested that blockchains will prove their value not through hype, but through durable financial utility.