basil (recession arc) pfp
basil (recession arc)
@itsbasil
when everything becomes a token, nothing has value; this fundamental truth has been ignored & the fallout is now making its way to x 1) excessive tokenization creates a mirage of opportunity while actually destroying ecosystem value. when we fragment liquidity across thousands of micro-tokens, each new addition doesn't expand the pie—it merely slices it thinner. attention remains finite; liquidity remains finite; but tokens multiply endlessly 2) the math simply doesn't work. in a hyper-tokenized environment, capital continually flows toward novelty, creating temporary spikes followed by inevitable crashes. you can say "normal market efficiency" but the system generates far more losers than winners by design, not by accident 3) "direct monetization" sounds empowering but masks a brutal reality: without substantial existing audience, discovery becomes nearly impossible in a sea of tokens. creators with smaller followings face worse odds than in traditional systems, not better ones
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basil (recession arc) pfp
basil (recession arc)
@itsbasil
we need ecosystems where success compounds rather than cannibalizes. this requires: > upstream value capture that benefits the entire ecosystem, not just individual tokens > mechanisms for discovery that don't place the entire burden on creators' reach > risk distribution that allows users to participate in broader success rather than gambling on individual creators lastly, critiquing over-tokenization isn't anti-crypto—it's advocating for sustainable tokenomics. i want token systems that create genuine value, not just temporary arbitrage opportunities; that is all this is doing we need token models that strengthen as they grow, not systems that collapse under their own weight. until we design with these principles, tokenization will continue to burn more users than it benefits this is the sad truth whatever this is, is not working & will never work, at least not in any sustainable fashion we have the ability to create better systems; that is why most of us are here in the first place...
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basil (recession arc) pfp
basil (recession arc)
@itsbasil
relevant https://warpcast.com/six/0x5c700454
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🍖🦙🎩 pfp
🍖🦙🎩
@hammallama.eth
I see comparisons here to magic the gathering Everything is foil and flashy, a million versions of every card Cards no longer hold value They reprint direct to customer via secret lair and crash price further Over printing sets and finding "lost" pallets of old sets Study basil Study Rudy from alpha investments
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ted (not lasso) pfp
ted (not lasso)
@ted
whoah that's crazy i literally just wrote this in a group chat: "cannibalizing attention in a market that's reflexive, not compounding" crazy !!!!!
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ruburi pfp
ruburi
@ruburi
i highly agree with all three points. especially on discovery mechanisms because in today's world -> the more popular you are -> the more valuable your ideas are perceived. but things dont always work this way. attention != quality (at least not consistent or sustainable quality) also @six's take about people joining crypto, losing money and then leave -> its logically correct from all angles right now what are the key traits of a compounding system? 1. participants continuously benefit from being in the system. this always requires some form of incentivization 2. the number of participants grows over time because new value attracts new people organically 3. each participant's action creates genuine value, which contributes back to the system and benefits others too 4. its PvE, not PvP — people play with the system, not against each other
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