Capitalism is killing the soul of Web3 every day

Author:hitesh.eth,Compiled byBlock unicorn

We have digital planets: Web2 and Web3.

The Web3 planet is quite new — it was originally built by pioneers who believed in decentralization, freedom, and autonomy. In its earliest days, it was a wild, unexplored land with no rulers, only builders.

But then, the bridge between Web2 and Web3 was built. At first, only a handful of capitalists from Web2 arrived, attracted by the raw potential of this new world. They watched from the sidelines, analyzing its terrain, understanding its rules, and identifying the most valuable territories.

Bitcoin Blockspace

The first wave of mass colonization began with Bitcoin, the most precious nation on the Web3 island. It was a scarce piece of land where ownership was clear and power belonged to those who understood its fundamentals.

But once the first settlers took control and secured their wealth, they began to expand. They saw that Web3 was much more than Bitcoin. There were vast, unclaimed territories waiting to be shaped. Soon, they began to move beyond Bitcoin and establish new territories — Ethereum, Solana, Polkadot, and countless others.

As more land was discovered, the race to carve up new nations intensified. At first, blockspace was scarce. The earliest blockchains operated under strict constraints—every transaction needed a spot, and there wasn’t much room. This scarcity gave blockspace enormous value. Owning even a small piece of blockspace meant having a seat in the new digital economy. But as competition grew, so did innovation.

ETH Transaction Visualization

More efficient ways to create blockspace emerged. Layer 2 solutions, Rollups, altchains—each brought a swathe of new land to the Web3 planet. What was once a scarce commodity became abundant.

Builders no longer fought over limited space; instead, they created endless new land to meet the growing demand for settlement. But the flood of blockspace had unintended consequences.

What was once precious became cheap. The cost of storing transactions — once a key economic force — has plummeted. The promise was that cheap blockspace would attract millions of new settlers from Web2, but the reality was different.

The people of Web2 hesitated.

They had heard of treasure hunters venturing into Web3, lured by promises of riches only to be devoured by its predators. Some Web2 residents did make the migration, lured by stories of getting rich overnight.

They entered Web3 hoping to carve out a place in the new economy. Many people get started by buying small plots of land — various tokens, each promising future value. They trade, speculate, build businesses, and believe they are in the early stages of the next great revolution.

But what they don’t realize is that Web3 has already been constructed by its earliest settlers and most powerful capitalists. The rules of the game are unwritten, but those who control the land know them. As more Web2 people migrate, they are unwittingly sucked in. The complexity of Web3 is daunting.

There are too many new countries, too many different rules, and too many scams disguised as opportunities. Big players control the flow of information, manipulate markets, inflate values, and pull the rug out from under the feet of unsuspecting settlers.

Planet Web3 has become a playground for those who know how to extract wealth from the ignorant. Even now that block space is cheaper than ever, adoption is slow. The dream of a mass migration from Web2 to Web3 is fading.

The new lands were set up with the promise of seamless user experiences, but they never lived up to the familiarity and convenience offered by Web2. The added promise of quick incentives wasn’t enough to entice people — people in Web2 had seen too many of their peers get hurt.

They watched entire nations within Web3 rise and fall overnight, fortunes made and lost in the blink of an eye. Ordinary people were hesitant, unable to see through the chaos. Yet, in the midst of the turmoil, a thriving trading market emerged.

Web3’s real estate — tokens — became the lifeblood of its economy. Everything was for sale. Each nation had its own property, unique assets, and promise of future value. Trading pits were endlessly open, running 24/7, driven by speculation, manipulation, and greed.

Some nations prospered temporarily, then declined as attention shifted. New land was minted every day, sold to the highest bidder, and then flipped for a short-term profit. The cycle never stopped. And while the settlers struggled, the real beneficiaries of Web3 flourished.

Bridge operators—exchanges—became gatekeepers, controlling the flow of assets between Web2 and Web3.

They make a profit every time someone enters or leaves. Market makers—those hidden forces that manage liquidity—ensure that no trade goes unnoticed, taking their share of every transaction. Developers continue to build, not necessarily to innovate, but to create more land to sell. And the marketers? They spin stories, craft narratives, and sell the dream to the next wave of hopeful settlers.

The dark side of Web3 is that it is no longer truly decentralized. The early ideals of a free and open digital frontier have been replaced by the cold reality of capital. The game is rigged.

The same forces that dominated Web2 have also infiltrated Web3. They have not only settled, but they have reshaped the planet to suit their needs. And so the Web3 planet continues to expand, becoming a frontier of endless digital land, speculation, and fleeting opportunities.

The dream of true decentralization remains, but for most people, it is just that, a dream. Settlers still come, hoping to strike it rich, but in the end, most leave with less than when they arrived.

Meanwhile, those who have mastered the system continue to extract, build and control, ensuring that the planet remains theirs to shape.