coins

My thesis on coins:

1. I think that all content is going to onchain. We've already started to see this with open editions, Farcaster, and more, but we're still at Day 1. I also think that over time the most composable, liquid way of "pricing" that content will be the one that wins out — this is because even if we don't want there to be, there is a market here.
2. I think ERC20s/tokens are an incredibly powerful building block for composability. They are also the "freest" / most liquid way of pricing assets. This means that they are accruing a huge amount of inertia around them and are instantly composable. This makes them a logical "endgame" for how content goes onchain.
3. The *problem* is that the mechanics around those coins are broken right now. Initial launches aren't priced right, there aren't positive sum ways for creators to capture value, there aren't "smart" ways for value to reaccruate to the tokens. This leads to bad outcomes.

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There’s still a lot to be figured out, of course, and like Jacob says, it’s going to be messy, but this seems like the most right path ahead at the moment.

I’m learning that when a lot of people say, “bring the world onchain”, they only mean the things and people they want to be onchain; it’s a more sophisticated way of saying, “bring in the exit liquidity and pump my bags.” yet for better or worse, there may need to be things onchain that we don’t want to be onchain.