Network effects are a key principle in economics that can be observed in various domains including technology, social media, and cryptocurrencies. The core concept is that the value of a product increases as the number of users grows; this often leads to increased demand and user engagement. In the context of Web3, network effects are particularly significant as decentralized applications (dApps) and blockchain networks become more valuable and robust as user adoption increases. This phenomenon can result in a dominant market position for platforms that achieve a critical mass of users, thereby extending their competitive advantage. For example, social networks like Facebook or decentralized platforms like Ethereum become more useful as more users join, creating richer interactions and further attracting users.