How do dapp devs avoid a 'race to the bottom'?

Question

Imagine Alice makes dapp-A, which has a .01% transaction fee. Now imagine the next day Bob forks dapp-A to create dapp-B and changes the transaction fee parameter to .005%. People will use dapp-B over A. Then Carl forks it to create dapp-C and so on.

How do you avoid this problem?

Answer 1

That's not how it works. You can fork UniswapV2 today and set the fees lower, but people won't magically switch to your version.

These things, along with many others, matter:

• Reputation
• Existing user base
• Existing conditions (such as existing liquidity on the platform)
• Habits

Being the first has a clear advantage, even if your platform is not perfect.