The next chapter of Web3: Saying goodbye to the speed race and returning to building foundations

Author: Alec Goh (Head of HTX Ventures)

The narrative of Web3 has long revolved around "freedom"—breaking the monopoly of intermediaries, optimizing inefficient systems, and disrupting outdated rules. By 2025, this social experiment is entering a new phase: mainstream institutions and regulators are beginning to recognize its potential and pave the way for the paradigm shift in digital identity and asset management.

From various governments starting to signal the recognition of Bitcoin as a strategic reserve asset to traditional institutions accelerating their entry into the space, the current Web3 landscape is characterized by ample liquidity, mature infrastructure, and global consensus. However, as a trading platform and venture capital institution deeply engaged in the industry, we must further question: how can this transformation truly create long-term value?

The crypto world is known for its "speed": rapid development iterations, fast capital flows, and even quicker narrative shifts. Under multiple pressures, founders can easily fall into the inertia of pursuing short-term speed. However, to build truly sustainable Web3 projects, teams must learn to "detach"—temporarily stepping away from code and market noise to return to the essential questions: Who are we serving, and what real needs are we addressing?

The history of traditional finance has long proven that all systems that transcend cycles are fundamentally based on risk management, transparency, and user trust. Web3 cannot bypass these three tests either. To build a trustworthy ecosystem, project teams must focus on sustainable value creation rather than indulging in speed races or speculative games. Security and trust must become part of the DNA, not an afterthought.

In HTX Ventures' observations, promising explorations are emerging in the industry:

• Breakthroughs in Bitcoin utility: such as Babylon activating Bitcoin's on-chain security through staking protocols;
• The wave of real asset tokenization: breaking down the barriers to entry in traditional finance and unlocking the liquidity of long-tail assets;
• Stablecoin payment networks: significantly reducing friction in cross-border trade and reshaping global business infrastructure;
• DePIN (Decentralized Physical Infrastructure): reconstructing traditional monopolistic sectors through shared models, allowing Web3 services to truly reach physical scenarios.

The commonality among these cases is: deconstructing real pain points with blockchain thinking and delivering user value through products. However, to transform this trend into an industry norm, systematic efforts are still needed:

Step One: Anchor on real needs, avoid self-indulgent innovation

Project teams must repeatedly ask: Are users willing to continuously pay for the solution? Does it fill a critical gap in the traditional system? Whether it’s reducing cross-border remittance costs by 60% or enabling 1 billion people to access high-yield financial tools for the first time, Web3's killer applications will inevitably emerge from "real-world interfaces."

Step Two: Design resilient economic and governance models

Token release curves, fund management mechanisms, DAO governance frameworks—these designs must serve the long-term health of the ecosystem, not early interest groups. For example:

• Avoid token unlocking rules that lead to "peak at launch";
• Implement dynamically adjusted contributor incentives (like Babylon's Bitcoin staking model);
• Reserve progressive empowerment space for DAOs (rather than locking control in code);
• Introduce anti-black swan mechanisms (such as Shell Finance achieving fair settlement through DLC technology).

Only when capital flow and value creation form a closed loop can projects truly accumulate network effects.

Step Three: Embed risk management into the protocol's DNA

Smart contract audits are just the baseline; truly robust systems require:

• Permissionless failover pathways;
• Redundant verification of multiple oracle data;
• Crisis response protocols that prioritize stress testing.

As institutional capital enters the space, resilience will become the core metric distinguishing "speculative toys" from "infrastructure."

Conclusion: Speed creates bubbles, value builds trust

When sovereign funds include Bitcoin on their balance sheets, and workers receive cross-border salaries through stablecoins, the legitimacy of Web3 no longer relies on slogans. Every token distribution plan, every governance vote, and every line of smart contract code contributes to the foundation of trust in the industry.

Web3 in 2025 will ultimately belong to those "slow companies"—they demonstrate that beyond the technological frenzy, there are more important stories worth telling through verifiable transparency, accumulable user value, and resilience against extreme market conditions.