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defi summer was the embryonic stage; innovation flourished: ideas were abundant, infrastructure lagged behind & regulation did not exist
now infrastructure has improved & crypto has entered the scaling stage
ideas are no longer abundant; emergence has slowed: most of the competition today is recycled & retried ideas, simply now at-scale
this has led to a decline in innovation (ie. low differentiation) but an increase in competition alongside better regulation, which has ushered in an era of fragmentation
this is what we are currently seeing
as the market is captured, maturity is realized, fees are reduced & regulation stabilizes; we will enter an era of consolidation
this is on the horizon
once growth largely becomes m&a driven, there is little room for new ideas & ai will predominantly drive emerging solutions
this means, today, at the token level, if you want to future-proof your project, you must front run consolidation
this is best accomplished with a locked flywheel at the network level 3 replies
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if everything becomes a token, then what jesse is saying here is correct—we all lose money
or put another way, none of us make money as attention & liquidity will become increasingly fragmented & asset appreciation will become few & far between
so again, the only way to combat this, is to front run consolidation at the network level which is best done through a flywheel
in this scenario, this would mean zora would have to step in & create a new tokenized system at the network level, which would effectively protect their creators downstream from consolidation & derisk the system as a whole
if they don’t, they will get gobbled up as the industry matures & consolidates, which would ultimately strip their creators of any potential earning power via whale games & price competition
in other words, growth will come to a halt & all earnings will be funneled to the top, leaving their downstream stakeholders caught disengaged & restricted to losses as the expense of a few
this applies to all of us 2 replies
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Your analysis is neat, like you’re sketching crypto’s fate from DeFi’s embryo to a consolidation black hole!
But hold up: innovation isn’t dead, just buried under shitcoins. Fragmentation’s not all bad,
it’s what keeps crypto free. Consolidation’s coming, sure, but ideas won’t dry up, humans always cook up something new, even if just to flex.
The flywheel’s slick, but in a free market, locking it is like tying a door with string—Zora’s gotta save itself before saving others.
Too much tokenization isn’t the issue; abusing it is.
It’s a zero-sum game, yeah, but not so black-and-white—you can still win with smarts and luck.
The last bus hasn’t rolled in yet! 0 reply
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