A novel three-component reaction (3CR)-based folding process that is able to generate complexity and skeletal diversity is described. The process utilizes chemodifferentiating organocatalyzed ABB' 3CRs of a terminal conjugated alkynoate (building block) with alpha-dicarbonyl compounds (diversity-generating blocks) to generate an array of different molecular topologies (gamma-lactones, linear propargylic enol ethers, or 1,3-dioxolane rings). Amides and esters behave as efficient reactivity-encoding elements (sigma) of the attached keto functionality. Three chemical properties govern the chemical outcome of this folding process: acidity, nucleophilicity (of the catalyst), and carbonyl electrophilicity. Overall, this substrate-based folding process generates three different molecular architectures from the same modular functionalities (ketones) and under the same reaction conditions (methyl propiolate and tertiary amine). In addition, and very importantly for combinatorial applications, all of the products share a common reactive functionality that allows them to be collective substrates for a subsequent diversity-generating process.