Many public blockchains with over 100M investment lost attraction after mainnet launch for a combination of technical, economic, social, and strategic failures. Here’s a breakdown of the key reasons: ⸻ 🧠 1. Lack of Product-Market Fit (PMF) •Most chains launched with infrastructure narratives (TPS, finality, modularity) but no real user demand. •They built platforms without solving real problems for users or developers. •Many expected developers to “come and build,” but no killer dApp emerged. Example: NEAR, Algorand — great tech, no sticky apps. ⸻ 🪙 2. Misaligned Tokenomics •Early investors dumped tokens post-mainnet (vested from seed/ICO). •Heavy reliance on incentive-driven ecosystems (yield farming, airdrops), creating mercenary liquidity. •Lack of long-term sustainable demand for tokens beyond speculation. Example: ICP, Avalanche — huge valuation crash after launch. ⸻ ⚙️ 3. Over-engineering & Complexity •Chains focused on “tech superiority” (e.g., ZK, multi-chain, sharding, parachains). •Resulted in poor developer experience (hard SDKs, bad docs, long deployment cycles). •Instead of embracing EVM compatibility, many invented new VMs with few users. Example: Polkadot, Kadena, Conflux — steep learning curves. ⸻ 📉 4. Weak Ecosystem and Community •Some chains didn’t nurture communities or grassroots dev networks. •Over-focused on VCs, government partnerships, or institutional use cases. •Missed out on Web3-native builders who thrive on open, fast-moving networks. Example: Algorand, Flow — more “enterprise blockchain” than Web3-native. ⸻ ⚔️ 5. Overcrowded Market •Too many chains launched between 2017–2022 with similar value propositions (speed, cost). •No differentiation once ETH scaling solutions (L2s) matured. •Ethereum, Solana, and newer chains like Base and Blast ate their lunch. ⸻ ⏱️ 6. Slow Execution and Delayed Mainnet •Projects raised funds but took years to ship or overpromised features. •Lost momentum, community attention, and developer interest during delay. Example: Dfinity (ICP), Aleo — years between fundraising and mainnet. ⸻ 📉 7. Bear Market Wipeouts •Many projects relied on bull-market hype. •Bear markets tested their ability to retain users, builders, liquidity — most failed. ⸻ 🧯 8. Poor Governance or Centralization •Some blockchains promoted “decentralization” but ran validator nodes themselves or allowed oligopolies. •Led to community distrust and governance capture by insiders. Example: EOS, where 21 validators formed a cartel. ⸻ 🔍 Summary: Why Public Blockchains Lose Traction ReasonExplanation ❌ No killer appTech without usage is just a prototype 💸 Token misalignmentEarly dumpers drain value from ecosystem 🧱 Developer-unfriendlyBad tooling, docs, onboarding 🌐 Weak network effectsSmall community = low usage = fewer builders 🐌 Execution lagTime-to-market too long 🧊 Centralization risksFewer nodes, untrusted governance 🧃 Unsustainable incentivesAirdrops ≠ adoption ⸻ ✅ What Actually Wins? Chains that: •Are simple to build on (e.g., EVM chains) •Foster community and memes (e.g., Solana, Base) •Focus on killer applications (DeFi, NFTs, AI agents) •Provide consistent user value, not just tech The key takeaway is: 👉 Don’t just build infra. Build utility, community, and culture.