In the past 5 years in the Web3 space, I’ve helped numerous startups leverage my expertise to facilitate their growth and secure subsequent rounds of financing.
This experience has shown me just how promising the coming years will be for building Web3 startups.
I’ve outlined 10 essential factors that will set you up for success in building your startup in 2025:
1. Solve real-world problems
The Web3 space has moved past the speculative mania of the early 2020s. Investors and users now demand practical, real-world applications. The best part about this space is you can choose from a list of thousands of problems and start developing solutions that truly matter.
What separates a successful startup from a not-so-great one is the solution (s) it provides to a problem faced by real people. The goal could be to Identify loopholes and inefficiencies in existing systems and find ways to improve them. Your product must also give users a good reason to buy or subscribe.
2. Design for User Experience(UX)
Design a simple, friendly, and intuitive user experience (UX) for your product, and implement a customer experience system that streamlines the process of signing up for your product. Quality CX will trigger customers to take action, while great UI and UX will make them stick
In 2025, most Web3 apps still suffer from poor user experience. As such, your role as an entrepreneur is significant in improving user experience and standing out in the market.
Features you should consider when coming up with your product’s user experience
- Wallet integration should be simple and secure.
- Minimize transaction friction by abstracting gas fees.
- Offer clear instructions and guided tutorials.
3. Choose the Right Blockchain
Not all blockchains are created equal. Several blockchain networks will compete in 2025 based on performance, cross-chain interoperability, costs, decentralization, and community and ecosystem support. Choosing a suitable network could significantly impact the success of your startup.
The blockchain you are building on has a long-term impact on your performance and operating costs. Depending on your needs, you could build it on a Layer 1 or Layer 2 blockchain. Bitcoin, Ethereum, and Solana are legacy L1s; emerging L1s like the Hyperledger protocol are also great and promise a mature network for building in 2025. If you’re interested in L2s, check Arbitrum, EigenLayer, and Base by Coinbase.
Bitcoin has revamped its ecosystem for cross-chain DeFi. However, Ethereum still dominates that space.
Here are some considerations to keep in mind when selecting a blockchain network: selecting a blockchain consider the following:
- Transaction fees and speed.
- Developer tools and documentation.
- Ecosystem partnerships.
- Community support and activity.
4. Implement Thoughtful Tokenomics
Many projects fail due to flawed tokenomics, so carefully designing and implementing future-proof tokenomics makes sense. Poorly designed tokenomics can lead to pump-and-dump scenarios or unsustainable growth.
Investors and users scrutinize token design more critically. It’s no longer enough to issue a token. Its purpose must be tied to the product.
Some of the best principles for tokenomics design include:
- Ensure fair initial distribution to avoid centralization.
- Align incentives for users, developers, and investors.
- Avoid overly aggressive inflation or rewards that distort behavior.
5. Prioritize Security from Day One
Security in Web3 is non-negotiable. Hacks, exploits, rug pulls, and market manipulation are everywhere, costing the industry billions of dollars. A single security flaw can destroy a startup’s reputation and finances. In 2025 alone, the Web3 space has already lost 2 billion due to rug pulls, hacks, and exploits.
Steps to secure your project:
- Conduct regular smart contract audits by reputable firms.
- Store minimal user data and follow best practices for wallet integration.
- Monitor your contracts and networks for unusual activity.
6. Embrace Decentralization Gradually
While decentralization is a core value of Web3, fully decentralized systems are complex to launch from day one. Many successful projects start with a semi-centralized structure and then progressively decentralize as the ecosystem matures.
This approach allows:
- Faster iteration and decision-making early on.
- It is time to educate users and build governance models.
- Gradual handoff to the community as it grows in sophistication.
7. Understand and Comply with Regulations
Regulatory clarity will improve in many regions by 2025, but it remains a moving target. Understanding legal obligations is crucial to avoid fines, shutdowns, or loss of projects.
Regulations are no longer vague in 2025. Governments worldwide have implemented clearer frameworks for digital assets, DAOs, and decentralized platforms. This brings legitimacy and scrutiny.
Best practices for complying with regulations include:
- Consult with legal experts in crypto regulation and securities law.
- Avoid unregistered security offerings.
- Be proactive in working with regulators when expanding into new markets.
- Stay current on changing rules in your operational jurisdiction.
A proactive legal strategy can save your startup from costly penalties and shutdowns.
8. Build and Nurture a Community
In Web3, your community is not just a marketing channel—it’s your co-builder, promoter, and investor. Building a strong, engaged, loyal community can be a powerful differentiator.
A strong community can help you with marketing, product development, and governance.
Projects with active and loyal communities often perform better than superior products.
To build a community, you use the following strategies:
- Be transparent with development updates and roadmaps.
- Reward early contributors and advocates through airdrops or token allocations.
- Use decentralized social platforms like Farcaster and Lens to build relationships.
- Host events like AMAs, hackathons, and governance votes.
9. Play the Long Game
Building in Web3 is a marathon, not a sprint. The space is volatile in terms of market cycles and technology shifts. Founders need to think beyond short-term hype and focus on building durable, adaptable systems.
Ways to future-proof your startup:
- Continuously gather user feedback and iterate
- Maintain a lean but skilled team to weather downtowns.
- Invest in developer documentation and open-source contributions
- Plan for decentralization, even if you start with a centralized model.
10. Be Modular and Interoperable
Make your app compatible with other protocols and standards. Users expect their assets, data, and identities to move across platforms seamlessly. Gone are the days of building with silos. In 2025, users expect their assets, data, and identities to move seamlessly.
Design your app to:
- Integrate with popular Web3 protocols and SDKs.
- Support wallet and identity standards like ERC-4337 and DID.
- Adopt cross-chain messaging protocols like layer zero or wormhole only when needed.
This approach increases your ecosystem surface area and opens broader cases.
Final Take
In conclusion, Web3 in 2025 offers advanced opportunities, but startups must integrate innovative technology with real-world relevance. By solving actual problems, designing for users, and building strong communities, entrepreneurs can enhance their chances of long-term success in a decentralized future. This evolution changes how people interact with one another and with technology.
Author: Stepan Sergeev, business development expert.
