The wall design dilemma of Mini-Apps: Vitalik reveals the real crisis facing the Web3 ecosystem

Ethereum co-founder Vitalik Buterin recently posed a thought-provoking question: Are the booming mini-apps pushing Web3 toward a new walled garden?

How Walled Garden Design Is Quietly Changing Web3’s Promises

Mini-apps undoubtedly lower the barrier to entry for new users. No need for complex wallet setups, no lengthy identity verification—users can click and use. Platforms like Worldcoin and Farcaster have thus experienced explosive growth. On the surface, this seems like the dawn of large-scale adoption of Web3.

But Buterin shattered this illusion during a roundtable discussion at Pragma Taipei 2025. He pointed out that many mini-apps’ walled garden designs—relying on proprietary APIs, closed key management, platform binding—are quietly eroding the core value proposition of blockchain: users’ true control over assets and identities.

When users cannot carry their cryptographic keys across different applications, they may seem free, but in reality, they are locked into isolated islands. Switching platforms becomes a painful, tooth-pulling experience, and developers face the same dilemma—dependent on a specific client, making it difficult to operate within other ecosystems.

The Truth Behind the Economic Logic

Why does this walled garden design exist? Buterin doesn’t shy away from the question. He points out that there are naked economic incentives behind it.

Platforms need to lock in users to ensure revenue streams. In contrast, open standards appear unprofitable. Maintaining shared infrastructure requires long-term investment but is hard to monetize, leading many builders to choose closed alternatives.

This isn’t malicious design but a rational choice under current incentive structures. The problem is: the entire ecosystem is paying the price for this “rationality”.

Why Are Open Standards So Difficult to Promote?

Buterin emphasizes that the original intention of blockchain is to break down walls, not to rebuild new ones. But truly breaking these walls requires rethinking incentive structures.

He notes that the Ethereum Foundation has shifted focus from end-user products to protocol development, aiming to encourage experimentation at the infrastructure level. But even so, promoting open tools still faces huge challenges—lack of clear profit models makes it difficult to attract sustained funding.

Meanwhile, issues like wallet recovery and developer tool standardization remain unresolved. The vast differences between applications and the lack of shared standards continue to confuse users.

Walled Garden Design vs. User Experience: A False Dilemma

Supporters often defend walled garden designs: “Closed systems offer a smoother interface, faster adoption.” But Buterin’s response is straightforward—this is a false trade-off between user convenience and fundamental freedom.

True Web3 shouldn’t be a choice between these two. The problem is that current incentive structures do not reward openness. If we can establish a framework where open standards also bring competitive advantages, the situation could change.

The Larger Ethereum Ecosystem Is Seeking Balance

The mini-apps dilemma is just a microcosm of the greater tensions faced by the Ethereum ecosystem. Buterin also discussed scalability solutions (comparing the economics of native rollups and based rollups), reversible decisions in governance mechanisms, and the price trends of blobs after the Dencun upgrade.

He describes decentralization as a long-term process, emphasizing that ecosystem growth requires a continuous balance between innovation and security. The issues with walled garden designs in mini-apps are a typical manifestation of this tension.

The Future of Choice Lies in Developers’ Hands

As mini-apps continue to expand, developers face a critical structural choice. Their decisions will not only impact their own businesses but also shape the future user freedom of the entire Web3 platform.

Breaking the curse of walled garden design requires not just technological breakthroughs but a change in how incentives are perceived. Perhaps this is the core message Buterin truly wants to convey—the future of Web3 depends on whether we are willing to redesign economic models for openness.