Spot on, Brett. Absolutely spot on.
If you wanted to extend the dialogue another step, you could add that at a network value of $130m with $234b of on-network transactions, it becomes very difficult, using the protocol’s native cryptoasset, to create adequate incentives and penalties to secure the network in relation to the…
Thank you for your thoughtful comments.
Antos: “ Could there exist utility tokens that naturally have low velocity, and thus would not resemble working capital? By natural, I mean as opposed to “artificial” methods of trying to incentivize hodling through PoS or other contrived mechanisms.”
Thanks for your comment. As this is essentially the same question as Elliot’s above, I’m just copying my response to him here for convenience.
Hi Elliot, thank you for your thoughtful comment and sorry for the slow reply. Super busy with other things at the moment. Your comment is of…
Hi Elliot, thank you for your thoughtful comment and sorry for the slow reply. Super busy with other things at the moment. Your comment is of course correct with respect to the airdropped cryptoasset itself based on your assumptions, but in assuming a velocity of 5 you’ve effectively assumed that your airdropped cryptoasset serves as a monetary store…
Hi Fernando, I highly recommend you read Chris Burniske’s blog post Chris Burniske’s recent blog post “Cryptoasset Valuations” (https://medium.com/@cburniske/cryptoasset-valuations-ac83479ffca7) on this topic. cheers, John
I’m an avid reader and fan of your work.
Point well-taken that there’s ample potential for innovation in token mechanics and that my paper was by no means exhaustive!
Discount tokens are an interesting idea. Thanks for sharing!