Supply-Side Driven Demand for Networks

04/07/2024

This is an idea which I've read about before, and a recent Substack article (look it up and add here) went into more detail about.

To me, if building a network of supply and demand, designing one where supply brings in a percentage of demand transactions, boosts growth.

Infrastructure-based supply networks, such as providing compute or data indexing, typically lacks this dynamic. These suppliers are often more operators "below the line" -- DevOps or raw infra -- and don't typically face customers directly.

But as the article pointed out, both sides need to benefit from the cross-side effects: customers benefit when there are more suppliers and, ideally (in network effects) more customers; and suppliers benefit from acquiring customers that they don't bring themselves.

Despite some of the potential margin and operating challenges, Chariot.xyz should shine in this regard.

Each Chariot Bus can passively bring in additional Riders. There are other stakeholders and participants in the Chariot Protocol that can also drive demand, but I'll start passively with the Chariot Bus.