crypto

Every network token should have an economic model, including the collection of fees that can be used for token buybacks.

This helps sustain the value of the token, which can be continuously issued to pay for the growth or operation of the network's marketplace (SOL, ETH, UNI are all examples).

CTO @a16zcrypto, lover of https://github.com/a16z/awesome-farcaster

Does there always need to be a scarce/limited resource associated with a token?

SOL/ETH -> Blockspace 
Uni -> Liquidity
Helium -> Coverage
Daylight -> Energy

Working on building zkTLS infra/products. A ruthless empiricist and meme connoisseur.

/opacity
/eulerlagrange

I’m a humble college dropout. My understanding is economics as a phenomenon arises out of scarcity.

There’s never enough to satisfy everyone.

It’s a slightly different point than not having demand.

For Daylight, imagine solar yielded 1000x more energy ceterus paribus. 

A token that is used to align incentives in the energy market wouldn’t work.

The thing in common here isn’t “scarcity” per se but that each of these are decentralized network-marketplaces and on the right you are listing the goods they are selling.

All network tokens are integral to a (decentralized) network (marketplace).

Scarcity is the key factor when you assess supply vs demand.

It doesn’t make sense to overfixate on artificial scarcity but there needs to be an equilibrium bw supply & demand to have sustainable growth.

For example, I would argue that ETH doesn’t need scarce blockspace to be valuable but a scarce amount of tokens to be used as money/store of value.

Crypto had one trick. Artificial Scarcity. And fucked it up before getting any meaningful adoption.

JR ↑

Scarcity is the key factor when you assess supply vs demand.

It doesn’t make sense to overfixate on artificial scarcity but there needs to be an equilibrium bw supply & demand to have sustainable growth.

For example, I would argue that ETH doesn’t need scarce blockspace to be valuable but a scarce amount of tokens to be used as money/store of value.

https://x.com/jrmr92/status/1912875978172354708