More on Personal Growth
Ari Joury, PhD
3 years ago
7 ways to turn into a major problem-solver
For some people, the glass is half empty. For others, it’s half full. And for some, the question is, How do I get this glass totally full again?
Problem-solvers are the last group. They're neutral. Pragmatists.
Problems surround them. They fix things instead of judging them. Problem-solvers improve the world wherever they go.
Some fail. Sometimes their good intentions have terrible results. Like when they try to help a grandma cross the road because she can't do it alone but discover she never wanted to.
Most programmers, software engineers, and data scientists solve problems. They use computer code to fix problems they see.
Coding is best done by understanding and solving the problem.
Despite your best intentions, building the wrong solution may have negative consequences. Helping an unwilling grandma cross the road.
How can you improve problem-solving?
1. Examine your presumptions.
Don’t think There’s a grandma, and she’s unable to cross the road. Therefore I must help her over the road. Instead think This grandma looks unable to cross the road. Let’s ask her whether she needs my help to cross it.
Maybe the grandma can’t cross the road alone, but maybe she can. You can’t tell for sure just by looking at her. It’s better to ask.
Maybe the grandma wants to cross the road. But maybe she doesn’t. It’s better to ask!
Building software is similar. Do only I find this website ugly? Who can I consult?
We all have biases, mental shortcuts, and worldviews. They simplify life.
Problem-solving requires questioning all assumptions. They might be wrong!
Think less. Ask more.
Secondly, fully comprehend the issue.
Grandma wants to cross the road? Does she want flowers from the shop across the street?
Understanding the problem advances us two steps. Instead of just watching people and their challenges, try to read their intentions.
Don't ask, How can I help grandma cross the road? Why would this grandma cross the road? What's her goal?
Understand what people want before proposing solutions.
3. Request more information. This is not a scam!
People think great problem solvers solve problems immediately. False!
Problem-solvers study problems. Understanding the problem makes solving it easy.
When you see a grandma struggling to cross the road, you want to grab her elbow and pull her over. However, a good problem solver would ask grandma what she wants. So:
Problem solver: Excuse me, ma’am? Do you wish to get over the road? Grandma: Yes indeed, young man! Thanks for asking. Problem solver: What do you want to do on the other side? Grandma: I want to buy a bouquet of flowers for my dear husband. He loves flowers! I wish the shop wasn’t across this busy road… Problem solver: Which flowers does your husband like best? Grandma: He loves red dahlia. I usually buy about 20 of them. They look so pretty in his vase at the window! Problem solver: I can get those dahlia for you quickly. Go sit on the bench over here while you’re waiting; I’ll be back in five minutes. Grandma: You would do that for me? What a generous young man you are!
A mediocre problem solver would have helped the grandma cross the road, but he might have forgotten that she needs to cross again. She must watch out for cars and protect her flowers on the way back.
A good problem solver realizes that grandma's husband wants 20 red dahlias and completes the task.
4- Rapid and intense brainstorming
Understanding a problem makes solutions easy. However, you may not have all the information needed to solve the problem.
Additionally, retrieving crucial information can be difficult.
You could start a blog. You don't know your readers' interests. You can't ask readers because you don't know who they are.
Brainstorming works here. Set a stopwatch (most smartphones have one) to ring after five minutes. In the remaining time, write down as many topics as possible.
No answer is wrong. Note everything.
Sort these topics later. Programming or data science? What might readers scroll past—are these your socks this morning?
Rank your ideas intuitively and logically. Write Medium stories using the top 35 ideas.
5 - Google it.
Doctor Google may answer this seemingly insignificant question. If you understand your problem, try googling or binging.
Someone has probably had your problem before. The problem-solver may have posted their solution online.
Use others' experiences. If you're social, ask a friend or coworker for help.
6 - Consider it later
Rest your brain.
Reread. Your brain needs rest to function.
Hustle culture encourages working 24/7. It doesn't take a neuroscientist to see that this is mental torture.
Leave an unsolvable problem. Visit friends, take a hot shower, or do whatever you enjoy outside of problem-solving.
Nap.
I get my best ideas in the morning after working on a problem. I couldn't have had these ideas last night.
Sleeping subconsciously. Leave it alone and you may be surprised by the genius it produces.
7 - Learn to live with frustration
There are problems that you’ll never solve.
Mathematicians are world-class problem-solvers. The brightest minds in history have failed to solve many mathematical problems.
A Gordian knot problem can frustrate you. You're smart!
Frustration-haters don't solve problems well. They choose simple problems to avoid frustration.
No. Great problem solvers want to solve a problem but know when to give up.
Frustration initially hurts. You adapt.
Famous last words
If you read this article, you probably solve problems. We've covered many ways to improve, so here's a summary:
Test your presumptions. Is the issue the same for everyone else when you see one? Or are your prejudices and self-judgments misguiding you?
Recognize the issue completely. On the surface, a problem may seem straightforward, but what's really going on? Try to see what the current situation might be building up to by thinking two steps ahead of the current situation.
Request more information. You are no longer a high school student. A two-sentence problem statement is not sufficient to provide a solution. Ask away if you need more details!
Think quickly and thoroughly. In a constrained amount of time, try to write down all your thoughts. All concepts are worthwhile! Later, you can order them.
Google it. There is a purpose for the internet. Use it.
Consider it later at night. A rested mind is more creative. It might seem counterintuitive to leave a problem unresolved. But while you're sleeping, your subconscious will handle the laborious tasks.
Accept annoyance as a normal part of life. Don't give up if you're feeling frustrated. It's a step in the procedure. It's also perfectly acceptable to give up on a problem because there are other, more pressing issues that need to be addressed.
You might feel stupid sometimes, but that just shows that you’re human. You care about the world and you want to make it better.
At the end of the day, that’s all there is to problem solving — making the world a little bit better.
Theo Seeds
3 years ago
The nine novels that have fundamentally altered the way I view the world
I read 53 novels last year and hope to do so again.
Books are best if you love learning. You get a range of perspectives, unlike podcasts and YouTube channels where you get the same ones.
Book quality varies. I've read useless books. Most books teach me something.
These 9 novels have changed my outlook in recent years. They've made me rethink what I believed or introduced me to a fresh perspective that changed my worldview.
You can order these books yourself. Or, read my summaries to learn what I've synthesized.
Enjoy!
Fooled By Randomness
Nassim Taleb worked as a Wall Street analyst. He used options trading to bet on unlikely events like stock market crashes.
Using financial models, investors predict stock prices. The models assume constant, predictable company growth.
These models base their assumptions on historical data, so they assume the future will be like the past.
Fooled By Randomness argues that the future won't be like the past. We often see impossible market crashes like 2008's housing market collapse. The world changes too quickly to use historical data: by the time we understand how it works, it's changed.
Most people don't live to see history unfold. We think our childhood world will last forever. That goes double for stable societies like the U.S., which hasn't seen major turbulence in anyone's lifetime.
Fooled By Randomness taught me to expect the unexpected. The world is deceptive and rarely works as we expect. You can't always trust your past successes or what you've learned.
Antifragile
More Taleb. Some things, like the restaurant industry and the human body, improve under conditions of volatility and turbulence.
We didn't have a word for this counterintuitive concept until Taleb wrote Antifragile. The human body (which responds to some stressors, like exercise, by getting stronger) and the restaurant industry both benefit long-term from disorder (when economic turbulence happens, bad restaurants go out of business, improving the industry as a whole).
Many human systems are designed to minimize short-term variance because humans don't understand it. By eliminating short-term variation, we increase the likelihood of a major disaster.
Once, we put out every forest fire we found. Then, dead wood piled up in forests, causing catastrophic fires.
We don't like price changes, so politicians prop up markets with stimulus packages and printing money. This leads to a bigger crash later. Two years ago, we printed a ton of money for stimulus checks, and now we have double-digit inflation.
Antifragile taught me how important Plan B is. A system with one or two major weaknesses will fail. Make large systems redundant, foolproof, and change-responsive.
Reality is broken
We dread work. Work is tedious. Right?
Wrong. Work gives many people purpose. People are happiest when working. (That's why some are workaholics.)
Factory work saps your soul, office work is boring, and working for a large company you don't believe in and that operates unethically isn't satisfying.
Jane McGonigal says in Reality Is Broken that meaningful work makes us happy. People love games because they simulate good work. McGonigal says work should be more fun.
Some think they'd be happy on a private island sipping cocktails all day. That's not true. Without anything to do, most people would be bored. Unemployed people are miserable. Many retirees die within 2 years, much more than expected.
Instead of complaining, find meaningful work. If you don't like your job, it's because you're in the wrong environment. Find the right setting.
The Lean Startup
Before the airplane was invented, Harvard scientists researched flying machines. Who knew two North Carolina weirdos would beat them?
The Wright Brothers' plane design was key. Harvard researchers were mostly theoretical, designing an airplane on paper and trying to make it fly in theory. They'd build it, test it, and it wouldn't fly.
The Wright Brothers were different. They'd build a cheap plane, test it, and it'd crash. Then they'd learn from their mistakes, build another plane, and it'd crash.
They repeated this until they fixed all the problems and one of their planes stayed aloft.
Mistakes are considered bad. On the African savannah, one mistake meant death. Even today, if you make a costly mistake at work, you'll be fired as a scapegoat. Most people avoid failing.
In reality, making mistakes is the best way to learn.
Eric Reis offers an unintuitive recipe in The Lean Startup: come up with a hypothesis, test it, and fail. Then, try again with a new hypothesis. Keep trying, learning from each failure.
This is a great startup strategy. Startups are new businesses. Startups face uncertainty. Run lots of low-cost experiments to fail, learn, and succeed.
Don't fear failing. Low-cost failure is good because you learn more from it than you lose. As long as your worst-case scenario is acceptable, risk-taking is good.
The Sovereign Individual
Today, nation-states rule the world. The UN recognizes 195 countries, and they claim almost all land outside of Antarctica.
We agree. For the past 2,000 years, much of the world's territory was ungoverned.
Why today? Because technology has created incentives for nation-states for most of the past 500 years. The logic of violence favors nation-states, according to James Dale Davidson, author of the Sovereign Individual. Governments have a lot to gain by conquering as much territory as possible, so they do.
Not always. During the Dark Ages, Europe was fragmented and had few central governments. Partly because of armor. With armor, a sword, and a horse, you couldn't be stopped. Large states were hard to form because they rely on the threat of violence.
When gunpowder became popular in Europe, violence changed. In a world with guns, assembling large armies and conquest are cheaper.
James Dale Davidson says the internet will make nation-states obsolete. Most of the world's wealth will be online and in people's heads, making capital mobile.
Nation-states rely on predatory taxation of the rich to fund large militaries and welfare programs.
When capital is mobile, people can live anywhere in the world, Davidson says, making predatory taxation impossible. They're not bound by their job, land, or factory location. Wherever they're treated best.
Davidson says that over the next century, nation-states will collapse because they won't have enough money to operate as they do now. He imagines a world of small city-states, like Italy before 1900. (or Singapore today).
We've already seen some movement toward a more Sovereign Individual-like world. The pandemic proved large-scale remote work is possible, freeing workers from their location. Many cities and countries offer remote workers incentives to relocate.
Many Western businesspeople live in tax havens, and more people are renouncing their US citizenship due to high taxes. Increasing globalization has led to poor economic conditions and resentment among average people in the West, which is why politicians like Trump and Sanders rose to popularity with angry rhetoric, even though Obama rose to popularity with a more hopeful message.
The Sovereign Individual convinced me that the future will be different than Nassim Taleb's. Large countries like the U.S. will likely lose influence in the coming decades, while Portugal, Singapore, and Turkey will rise. If the trend toward less freedom continues, people may flee the West en masse.
So a traditional life of college, a big firm job, hard work, and corporate advancement may not be wise. Young people should learn as much as possible and develop flexible skills to adapt to the future.
Sapiens
Sapiens is a history of humanity, from proto-humans in Ethiopia to our internet society today, with some future speculation.
Sapiens views humans (and Homo sapiens) as a unique species on Earth. We were animals 100,000 years ago. We're slowly becoming gods, able to affect the climate, travel to every corner of the Earth (and the Moon), build weapons that can kill us all, and wipe out thousands of species.
Sapiens examines what makes Homo sapiens unique. Humans can believe in myths like religion, money, and human-made entities like countries and LLCs.
These myths facilitate large-scale cooperation. Ants from the same colony can cooperate. Any two humans can trade, though. Even if they're not genetically related, large groups can bond over religion and nationality.
Combine that with intelligence, and you have a species capable of amazing feats.
Sapiens may make your head explode because it looks at the world without presupposing values, unlike most books. It questions things that aren't usually questioned and says provocative things.
It also shows how human history works. It may help you understand and predict the world. Maybe.
The 4-hour Workweek
Things can be done better.
Tradition, laziness, bad bosses, or incentive structures cause complacency. If you're willing to make changes and not settle for the status quo, you can do whatever you do better and achieve more in less time.
The Four-Hour Work Week advocates this. Tim Ferriss explains how he made more sales in 2 hours than his 8-hour-a-day colleagues.
By firing 2 of his most annoying customers and empowering his customer service reps to make more decisions, he was able to leave his business and travel to Europe.
Ferriss shows how to escape your 9-to-5, outsource your life, develop a business that feeds you with little time, and go on mini-retirement adventures abroad.
Don't accept the status quo. Instead, level up. Find a way to improve your results. And try new things.
Why Nations Fail
Nogales, Arizona and Mexico were once one town. The US/Mexico border was arbitrarily drawn.
Both towns have similar cultures and populations. Nogales, Arizona is well-developed and has a high standard of living. Nogales, Mexico is underdeveloped and has a low standard of living. Whoa!
Why Nations Fail explains how government-created institutions affect country development. Strong property rights, capitalism, and non-corrupt governments promote development. Countries without capitalism, strong property rights, or corrupt governments don't develop.
Successful countries must also embrace creative destruction. They must offer ordinary citizens a way to improve their lot by creating value for others, not reducing them to slaves, serfs, or peasants. Authors say that ordinary people could get rich on trading expeditions in 11th-century Venice.
East and West Germany and North and South Korea have different economies because their citizens are motivated differently. It explains why Chile, China, and Singapore grow so quickly after becoming market economies.
People have spent a lot of money on third-world poverty. According to Why Nations Fail, education and infrastructure aren't the answer. Developing nations must adopt free-market economic policies.
Elon Musk
Elon Musk is the world's richest man, but that’s not a good way to describe him. Elon Musk is the world's richest man, which is like calling Steve Jobs a turtleneck-wearer or Benjamin Franklin a printer.
Elon Musk does cool sci-fi stuff to help humanity avoid existential threats.
Oil will run out. We've delayed this by developing better extraction methods. We only have so much nonrenewable oil.
Our society is doomed if it depends on oil. Elon Musk invested heavily in Tesla and SolarCity to speed the shift to renewable energy.
Musk worries about AI: we'll build machines smarter than us. We won't be able to stop these machines if something goes wrong, just like cows can't fight humans. Neuralink: we need to be smarter to compete with AI when the time comes.
If Earth becomes uninhabitable, we need a backup plan. Asteroid or nuclear war could strike Earth at any moment. We may not have much time to react if it happens in a few days. We must build a new civilization while times are good and resources are plentiful.
Short-term problems dominate our politics, but long-term issues are more important. Long-term problems can cause mass casualties and homelessness. Musk demonstrates how to think long-term.
The main reason people are impressed by Elon Musk, and why Ashlee Vances' biography influenced me so much, is that he does impossible things.
Electric cars were once considered unprofitable, but Tesla has made them mainstream. SpaceX is the world's largest private space company.
People lack imagination and dismiss ununderstood ideas as impossible. Humanity is about pushing limits. Don't worry if your dreams seem impossible. Try it.
Thanks for reading.
Daniel Vassallo
3 years ago
Why I quit a $500K job at Amazon to work for myself
I quit my 8-year Amazon job last week. I wasn't motivated to do another year despite promotions, pay, recognition, and praise.
In AWS, I built developer tools. I could have worked in that field forever.
I became an Amazon developer. Within 3.5 years, I was promoted twice to senior engineer and would have been promoted to principal engineer if I stayed. The company said I had great potential.
Over time, I became a reputed expert and leader within the company. I was respected.
First year I made $75K, last year $511K. If I stayed another two years, I could have made $1M.
Despite Amazon's reputation, my work–life balance was good. I no longer needed to prove myself and could do everything in 40 hours a week. My team worked from home once a week, and I rarely opened my laptop nights or weekends.
My coworkers were great. I had three generous, empathetic managers. I’m very grateful to everyone I worked with.
Everything was going well and getting better. My motivation to go to work each morning was declining despite my career and income growth.
Another promotion, pay raise, or big project wouldn't have boosted my motivation. Motivation was also waning. It was my freedom.
Demotivation
My motivation was high in the beginning. I worked with someone on an internal tool with little scrutiny. I had more freedom to choose how and what to work on than in recent years. Me and another person improved it, talked to users, released updates, and tested it. Whatever we wanted, we did. We did our best and were mostly self-directed.
In recent years, things have changed. My department's most important project had many stakeholders and complex goals. What I could do depended on my ability to convince others it was the best way to achieve our goals.
Amazon was always someone else's terms. The terms started out simple (keep fixing it), but became more complex over time (maximize all goals; satisfy all stakeholders). Working in a large organization imposed restrictions on how to do the work, what to do, what goals to set, and what business to pursue. This situation forced me to do things I didn't want to do.
Finding New Motivation
What would I do forever? Not something I did until I reached a milestone (an exit), but something I'd do until I'm 80. What could I do for the next 45 years that would make me excited to wake up and pay my bills? Is that too unambitious? Nope. Because I'm motivated by two things.
One is an external carrot or stick. I'm not forced to file my taxes every April, but I do because I don't want to go to jail. Or I may not like something but do it anyway because I need to pay the bills or want a nice car. Extrinsic motivation
One is internal. When there's no carrot or stick, this motivates me. This fuels hobbies. I wanted a job that was intrinsically motivated.
Is this too low-key? Extrinsic motivation isn't sustainable. Getting promoted felt good for a week, then it was over. When I hit $100K, I admired my W2 for a few days, but then it wore off. Same thing happened at $200K, $300K, $400K, and $500K. Earning $1M or $10M wouldn't change anything. I feel the same about every material reward or possession. Getting them feels good at first, but quickly fades.
Things I've done since I was a kid, when no one forced me to, don't wear off. Coding, selling my creations, charting my own path, and being honest. Why not always use my strengths and motivation? I'm lucky to live in a time when I can work independently in my field without large investments. So that’s what I’m doing.
What’s Next?
I'm going all-in on independence and will make a living from scratch. I won't do only what I like, but on my terms. My goal is to cover my family's expenses before my savings run out while doing something I enjoy. What more could I want from my work?
You can now follow me on Twitter as I continue to document my journey.
This post is a summary. Read full article here
You might also like
Tim Denning
3 years ago
Bills are paid by your 9 to 5. 6 through 12 help you build money.
40 years pass. After 14 years of retirement, you die. Am I the only one who sees the problem?
I’m the Jedi master of escaping the rat race.
Not to impress. I know this works since I've tried it. Quitting a job to make money online is worse than Kim Kardashian's internet-burning advice.
Let me help you rethink the move from a career to online income to f*ck you money.
To understand why a job is a joke, do some life math.
Without a solid why, nothing makes sense.
The retirement age is 65. Our processed food consumption could shorten our 79-year average lifespan.
You spend 40 years working.
After 14 years of retirement, you die.
Am I alone in seeing the problem?
Life is too short to work a job forever, especially since most people hate theirs. After-hours skills are vital.
Money equals unrestricted power, f*ck you.
F*ck you money is the answer.
Jack Raines said it first. He says we can do anything with the money. Jack, a young rebel straight out of college, can travel and try new foods.
F*ck you money signifies not checking your bank account before buying.
F*ck you” money is pure, unadulterated freedom with no strings attached.
Jack claims you're rich when you rarely think about money.
Avoid confusion.
This doesn't imply you can buy a Lamborghini. It indicates your costs, income, lifestyle, and bank account are balanced.
Jack established an online portfolio while working for UPS in Atlanta, Georgia. So he gained boundless power.
The portion that many erroneously believe
Yes, you need internet abilities to make money, but they're not different from 9-5 talents.
Sahil Lavingia, Gumroad's creator, explains.
A job is a way to get paid to learn.
Mistreat your boss 9-5. Drain his skills. Defuse him. Love and leave him (eventually).
Find another employment if yours is hazardous. Pick an easy job. Make sure nothing sneaks into your 6-12 time slot.
The dumb game that makes you a sheep
A 9-5 job requires many job interviews throughout life.
You email your résumé to employers and apply for jobs through advertisements. This game makes you a sheep.
You're competing globally. Work-from-home makes the competition tougher. If you're not the cheapest, employers won't hire you.
After-hours online talents (say, 6 pm-12 pm) change the game. This graphic explains it better:
Online talents boost after-hours opportunities.
You go from wanting to be picked to picking yourself. More chances equal more money. Your f*ck you fund gets the extra cash.
A novel method of learning is essential.
College costs six figures and takes a lifetime to repay.
Informal learning is distinct. 6-12pm:
Observe the carefully controlled Twitter newsfeed.
Make use of Teachable and Gumroad's online courses.
Watch instructional YouTube videos
Look through the top Substack newsletters.
Informal learning is more effective because it's not obvious. It's fun to follow your curiosity and hobbies.
The majority of people lack one attitude. It's simple to learn.
One big impediment stands in the way of f*ck you money and time independence. So often.
Too many people plan after 6-12 hours. Dreaming. Big-thinkers. Strategically. They fill their calendar with meetings.
This is after-hours masturb*tion.
Sahil Bloom reminded me that a bias towards action will determine if this approach works for you.
The key isn't knowing what to do from 6-12 a.m. Trust yourself and develop abilities as you go. It's for building the parachute after you jump.
Sounds risky. We've eliminated the risk by finishing this process after hours while you work 9-5.
With no risk, you can have an I-don't-care attitude and still be successful.
When you choose to move forward, this occurs.
Once you try 9-5/6-12, you'll tell someone.
It's bad.
Few of us hang out with problem-solvers.
It's how much of society operates. So they make reasons so they can feel better about not giving you money.
Matthew Kobach told me chasing f*ck you money is easier with like-minded folks.
Without f*ck you money friends, loneliness will take over and you'll think you've messed up when you just need to keep going.
Steal this easy guideline
Let's act. No more fluffing and caressing.
1. Learn
If you detest your 9-5 talents or don't think they'll work online, get new ones. If you're skilled enough, continue.
Easlo recommends these skills:
Designer for Figma
Designer Canva
bubble creators
editor in Photoshop
Automation consultant for Zapier
Designer of Webflow
video editor Adobe
Ghostwriter for Twitter
Idea consultant
Artist in Blender Studio
2. Develop the ability
Every night from 6-12, apply the skill.
Practicing ghostwriting? Write someone's tweets for free. Do someone's website copy to learn copywriting. Get a website to the top of Google for a keyword to understand SEO.
Free practice is crucial. Your 9-5 pays the money, so work for free.
3. Take off stealthily like a badass
Another mistake. Sell to few. Don't be the best. Don't claim expertise.
Sell your new expertise to others behind you.
Two ways:
Using a digital good
By providing a service,
Point 1 also includes digital service examples. Digital products include eBooks, communities, courses, ad-supported podcasts, and templates. It's easy. Your 9-5 job involves one of these.
Take ideas from work.
Why? They'll steal your time for profit.
4. Iterate while feeling awful
First-time launches always fail. You'll feel terrible. Okay. Remember your 9-5?
Find improvements. Ask free and paying consumers what worked.
Multiple relaunches, each 1% better.
5. Discover more
Never stop learning. Improve your skill. Add a relevant skill. Learn copywriting if you write online.
After-hours students earn the most.
6. Continue
Repetition is key.
7. Make this one small change.
Consistently. The 6-12 momentum won't make you rich in 30 days; that's success p*rn.
Consistency helps wage slaves become f*ck you money. Most people can't switch between the two.
Putting everything together
It's easy. You're probably already doing some.
This formula explains why, how, and what to do. It's a 5th-grade-friendly blueprint. Good.
Reduce financial risk with your 9-to-5. Replace Netflix with 6-12 money-making talents.
Life is short; do whatever you want. Today.
Jennifer Tieu
3 years ago
Why I Love Azuki
Azuki Banner (www.azuki.com)
Disclaimer: This is my personal viewpoint. I'm not on the Azuki team. Please keep in mind that I am merely a fan, community member, and holder. Please do your own research and pardon my grammar. Thanks!
Azuki has changed my view of NFTs.
When I first entered the NFT world, I had no idea what to expect. I liked the idea. So I invested in some projects, fought for whitelists, and discovered some cool NFTs projects (shout-out to CATC). I lost more money than I earned at one point, but I hadn't invested excessively (only put in what you can afford to lose). Despite my losses, I kept looking. I almost waited for the “ah-ha” moment. A NFT project that changed my perspective on NFTs. What makes an NFT project more than a work of art?
Answer: Azuki.
The Art
The Azuki art drew me in as an anime fan. It looked like something out of an anime, and I'd never seen it before in NFT.
The project was still new. The first two animated teasers were released with little fanfare, but I was impressed with their quality. You can find them on Instagram or in their earlier Tweets.
The teasers hinted that this project could be big and that the team could deliver. It was amazing to see Shao cut the Azuki posters with her katana. Especially at the end when she sheaths her sword and the music cues. Then the live action video of the young boy arranging the Azuki posters seemed movie-like. I felt like I was entering the Azuki story, brand, and dope theme.
The team did not disappoint with the Azuki NFTs. The level of detail in the art is stunning. There were Azukis of all genders, skin and hair types, and more. These 10,000 Azukis have so much representation that almost anyone can find something that resonates. Rather than me rambling on, I suggest you visit the Azuki gallery
The Team
If the art is meant to draw you in and be the project's face, the team makes it more. The NFT would be a JPEG without a good team leader. Not that community isn't important, but no community would rally around a bad team.
Because I've been rugged before, I'm very focused on the team when considering a project. While many project teams are anonymous, I try to find ones that are doxxed (public) or at least appear to be established. Unlike Azuki, where most of the Azuki team is anonymous, Steamboy is public. He is (or was) Overwatch's character art director and co-creator of Azuki. I felt reassured and could trust the project after seeing someone from a major game series on the team.
Then I tried to learn as much as I could about the team. Following everyone on Twitter, reading their tweets, and listening to recorded AMAs. I was impressed by the team's professionalism and dedication to their vision for Azuki, led by ZZZAGABOND.
I believe the phrase “actions speak louder than words” applies to Azuki. I can think of a few examples of what the Azuki team has done, but my favorite is ERC721A.
With ERC721A, Azuki has created a new algorithm that allows minting multiple NFTs for essentially the same cost as minting one NFT.
I was ecstatic when the dev team announced it. This fascinates me as a self-taught developer. Azuki released a product that saves people money, improves the NFT space, and is open source. It showed their love for Azuki and the NFT community.
The Community
Community, community, community. It's almost a chant in the NFT space now. A community, like a team, can make or break a project. We are the project's consumers, shareholders, core, and lifeblood. The team builds the house, and we fill it. We stay for the community.
When I first entered the Azuki Discord, I was surprised by the calm atmosphere. There was no news about the project. No release date, no whitelisting requirements. No grinding or spamming either. People just wanted to hangout, get to know each other, and talk. It was nice. So the team could pick genuine people for their mintlist (aka whitelist).
But nothing fundamental has changed since the release. It has remained an authentic, fun, and helpful community. I'm constantly logging into Discord to chat with others or follow conversations. I see the community's openness to newcomers. Everyone respects each other (barring a few bad apples) and the variety of people passing through is fascinating. This human connection and interaction is what I enjoy about this place. Being a part of a group that supports a cause.
Finally, I want to thank the amazing Azuki mod team and the kissaten channel for their contributions.
The Brand
So, what sets Azuki apart from other projects? They are shaping a brand or identity. The Azuki website, I believe, best captures their vision. (This is me gushing over the site.)
If you go to the website, turn on the dope playlist in the bottom left. The playlist features a mix of Asian and non-Asian hip-hop and rap artists, with some lo-fi thrown in. The songs on the playlist change, but I think you get the vibe Azuki embodies just by turning on the music.
The Garden is our next stop where we are introduced to Azuki.
A brand.
We're creating a new brand together.
A metaverse brand. By the people.
A collection of 10,000 avatars that grant Garden membership. It starts with exclusive streetwear collabs, NFT drops, live events, and more. Azuki allows for a new media genre that the world has yet to discover. Let's build together an Azuki, your metaverse identity.
The Garden is a magical internet corner where art, community, and culture collide. The boundaries between the physical and digital worlds are blurring.
Try a Red Bean.
The text begins with Azuki's intention in the space. It's a community-made metaverse brand. Then it goes into more detail about Azuki's plans. Initiation of a story or journey. "Would you like to take the red bean and jump down the rabbit hole with us?" I love the Matrix red pill or blue pill play they used. (Azuki in Japanese means red bean.)
Morpheus, the rebel leader, offers Neo the choice of a red or blue pill in The Matrix. “You take the blue pill... After the story, you go back to bed and believe whatever you want. Your red pill... Let me show you how deep the rabbit hole goes.” Aware that the red pill will free him from the enslaving control of the machine-generated dream world and allow him to escape into the real world, he takes it. However, living the “truth of reality” is harsher and more difficult.
It's intriguing and draws you in. Taking the red bean causes what? Where am I going? I think they did well in piqueing a newcomer's interest.
Not convinced by the Garden? Read the Manifesto. It reinforces Azuki's role.
Here comes a new wave…
And surfing here is different.
Breaking down barriers.
Building open communities.
Creating magic internet money with our friends.
To those who don’t get it, we tell them: gm.
They’ll come around eventually.
Here’s to the ones with the courage to jump down a peculiar rabbit hole.
One that pulls you away from a world that’s created by many and owned by few…
To a world that’s created by more and owned by all.
From The Garden come the human beans that sprout into your family.
We rise together.
We build together.
We grow together.
Ready to take the red bean?
Not to mention the Mindmap, it sets Azuki apart from other projects and overused Roadmaps. I like how the team recognizes that the NFT space is not linear. So many of us are still trying to figure it out. It is Azuki's vision to adapt to changing environments while maintaining their values. I admire their commitment to long-term growth.
Conclusion
To be honest, I have no idea what the future holds. Azuki is still new and could fail. But I'm a long-term Azuki fan. I don't care about quick gains. The future looks bright for Azuki. I believe in the team's output. I love being an Azuki.
Thank you! IKUZO!
Full post here
Theresa W. Carey
3 years ago
How Payment for Order Flow (PFOF) Works
What is PFOF?
PFOF is a brokerage firm's compensation for directing orders to different parties for trade execution. The brokerage firm receives fractions of a penny per share for directing the order to a market maker.
Each optionable stock could have thousands of contracts, so market makers dominate options trades. Order flow payments average less than $0.50 per option contract.
Order Flow Payments (PFOF) Explained
The proliferation of exchanges and electronic communication networks has complicated equity and options trading (ECNs) Ironically, Bernard Madoff, the Ponzi schemer, pioneered pay-for-order-flow.
In a December 2000 study on PFOF, the SEC said, "Payment for order flow is a method of transferring trading profits from market making to brokers who route customer orders to specialists for execution."
Given the complexity of trading thousands of stocks on multiple exchanges, market making has grown. Market makers are large firms that specialize in a set of stocks and options, maintaining an inventory of shares and contracts for buyers and sellers. Market makers are paid the bid-ask spread. Spreads have narrowed since 2001, when exchanges switched to decimals. A market maker's ability to play both sides of trades is key to profitability.
Benefits, requirements
A broker receives fees from a third party for order flow, sometimes without a client's knowledge. This invites conflicts of interest and criticism. Regulation NMS from 2005 requires brokers to disclose their policies and financial relationships with market makers.
Your broker must tell you if it's paid to send your orders to specific parties. This must be done at account opening and annually. The firm must disclose whether it participates in payment-for-order-flow and, upon request, every paid order. Brokerage clients can request payment data on specific transactions, but the response takes weeks.
Order flow payments save money. Smaller brokerage firms can benefit from routing orders through market makers and getting paid. This allows brokerage firms to send their orders to another firm to be executed with other orders, reducing costs. The market maker or exchange benefits from additional share volume, so it pays brokerage firms to direct traffic.
Retail investors, who lack bargaining power, may benefit from order-filling competition. Arrangements to steer the business in one direction invite wrongdoing, which can erode investor confidence in financial markets and their players.
Pay-for-order-flow criticism
It has always been controversial. Several firms offering zero-commission trades in the late 1990s routed orders to untrustworthy market makers. During the end of fractional pricing, the smallest stock spread was $0.125. Options spreads widened. Traders found that some of their "free" trades cost them a lot because they weren't getting the best price.
The SEC then studied the issue, focusing on options trades, and nearly decided to ban PFOF. The proliferation of options exchanges narrowed spreads because there was more competition for executing orders. Options market makers said their services provided liquidity. In its conclusion, the report said, "While increased multiple-listing produced immediate economic benefits to investors in the form of narrower quotes and effective spreads, these improvements have been muted with the spread of payment for order flow and internalization."
The SEC allowed payment for order flow to continue to prevent exchanges from gaining monopoly power. What would happen to trades if the practice was outlawed was also unclear. SEC requires brokers to disclose financial arrangements with market makers. Since then, the SEC has watched closely.
2020 Order Flow Payment
Rule 605 and Rule 606 show execution quality and order flow payment statistics on a broker's website. Despite being required by the SEC, these reports can be hard to find. The SEC mandated these reports in 2005, but the format and reporting requirements have changed over the years, most recently in 2018.
Brokers and market makers formed a working group with the Financial Information Forum (FIF) to standardize order execution quality reporting. Only one retail brokerage (Fidelity) and one market maker remain (Two Sigma Securities). FIF notes that the 605/606 reports "do not provide the level of information that allows a retail investor to gauge how well a broker-dealer fills a retail order compared to the NBBO (national best bid or offer’) at the time the order was received by the executing broker-dealer."
In the first quarter of 2020, Rule 606 reporting changed to require brokers to report net payments from market makers for S&P 500 and non-S&P 500 equity trades and options trades. Brokers must disclose payment rates per 100 shares by order type (market orders, marketable limit orders, non-marketable limit orders, and other orders).
Richard Repetto, Managing Director of New York-based Piper Sandler & Co., publishes a report on Rule 606 broker reports. Repetto focused on Charles Schwab, TD Ameritrade, E-TRADE, and Robinhood in Q2 2020. Repetto reported that payment for order flow was higher in the second quarter than the first due to increased trading activity, and that options paid more than equities.
Repetto says PFOF contributions rose overall. Schwab has the lowest options rates, while TD Ameritrade and Robinhood have the highest. Robinhood had the highest equity rating. Repetto assumes Robinhood's ability to charge higher PFOF reflects their order flow profitability and that they receive a fixed rate per spread (vs. a fixed rate per share by the other brokers).
Robinhood's PFOF in equities and options grew the most quarter-over-quarter of the four brokers Piper Sandler analyzed, as did their implied volumes. All four brokers saw higher PFOF rates.
TD Ameritrade took the biggest income hit when cutting trading commissions in fall 2019, and this report shows they're trying to make up the shortfall by routing orders for additional PFOF. Robinhood refuses to disclose trading statistics using the same metrics as the rest of the industry, offering only a vague explanation on their website.
Summary
Payment for order flow has become a major source of revenue as brokers offer no-commission equity (stock and ETF) orders. For retail investors, payment for order flow poses a problem because the brokerage may route orders to a market maker for its own benefit, not the investor's.
Infrequent or small-volume traders may not notice their broker's PFOF practices. Frequent traders and those who trade larger quantities should learn about their broker's order routing system to ensure they're not losing out on price improvement due to a broker prioritizing payment for order flow.
This post is a summary. Read full article here