basil
@itsbasil
downstream actors in fragmented networks inevitably become exit liquidity for upstream consolidators, specifically as networks mature protection requires top level liquidity provisioning, lock-up mechanisms & flywheels that align incentives across all lower level network nodes in other words, proper upstream network effects are needed before downstream interface or app level fragmentation can sustain without it, you’ve built a purely zero sum game; a finite game; a game of volatility & attention—one that will inevitably work against 99% of its participants it’s necessary that will build nested systems that can absorb shock at the lowest levels, eg. the creators, users & collectors only they can we begin to remove some “zero-sumness” from the equation; only then can the shrimp survive long enough to mature & reproduce everything else is noise & increasingly so
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Rafaello.base.eth
@rafaello12
True network longevity comes from nested, shock-absorbing systems. What mechanisms best prevent downstream actors from becoming exit liquidity in maturing networks?
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basil
@itsbasil
upstream protection & network effects take any publication for example a journalist can have a few bad weeks of content & will still survive to produce more content in the next given the network itself derisks any individual node risk, eg. salary, other journalists & their content, publication brand equity & reputation, monetization, etc. further an undiscovered journalists can tap into the network to gain notoriety & readers given the established network effects (distro) consider this against zoras new erc20 mechanism where new creators are simply left to fend for themselves so outside of any attention capture event whereby a single actor with a large following effectively replaces the need for proper distribution… creators, users & collectors are largely left carrying all the risk so as networks consolidate, for example, the winners on zora are susceptible to poachment on incremental fees or via some other easy vampire-style mechanism as there is nothing to prevent such behaviors & losers just lose
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Rafaello.base.eth
@rafaello12
Exactly,without upstream protection, every participant is exposed to pure market forces, making sustainability fragile.
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