$DEGEN has laid out the economics of Farcaster channels

Create a channel, build a community, launch a token, reward those who were early 

Use token as a karma system for being active

Use token as a channel currency for rewarding contributors and content

building @hypeshot 
ycs22 
uchicago baseball ‘19

How would that sustain in the long run though?
You can be actively engaged in ~5 communities but the incentives are placed for people to spin up and jump to new channels to print/farm tokens. There will be few successful examples, everything else will be a spike and slow bleed to zero (both engagement and token price)

Principal at Cobalt Ventures. Write @ TheItinerant.io ; BenErsing.com Host: /venturecapital /finance /adventures

https://warpcast.com/capitulation/0x07604b93