Great read.
Jon Kol
1

Jon, I’m not sure I fully agree with the first point. Take for example corn. We know that corn is a commodity, not a security. At the same time the price of corn is influenced by many projections: weather, seasonality, projected demand, etc. If corn producers are expecting higher demand in the near future say due to higher projected cattle headcount, this will be reflected in the price. Another example is taxi medallions. It is clearly priced based on the projected cashflows from operating a taxi cab, but is not a security (pardon if that’s not true, I’m not an expert on the topic).

Regarding the second point. That’s true if prices/fees are fixed and denominated in tokens. If the prices are set in fiat or determined by a competitive marketplace, the token price shouldn’t matter much. For example as ETH price goes up, miners are accepting transactions with lower gas price, keeping the fiat-denominated transaction costs roughly stable. In other words, higher ETH price doesn’t make ETH less usable or more expensive (in theory).

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