reframing

"Once again, ATF had made the mistake they had with the Kelly press of complacently taking profits from a successful product, not investing in improvements, and eventually seeing this product become irretrievably overtaken by the competition." - https://en.wikipedia.org/wiki/American_Type_Founders

So let's flip this around and talk about open protocols:

How to ensure that profits generated from activity on these protocols are reinvested back into improving the protocol and keeping it relevant? Instead of all the value getting extracted, leaving the protocol vulnerable to obsolescence.

This is why the grant ecosystem is such a crucial factor that needs to be robust. We have to design capture resistant grant programs that are able to enshrine protocol values into development incentives. 

A very interesting challenge!

🔓 Lead Steward @unlock-protocol
✨ Founder of /thealanaproject
🎨 Digital Creator
https://www.bonfire.xyz/stellaachenbach

Well put! I love the framing of "an economy with a conscience"!!

I was definitely thinking of you and many of our conversations with this cast! I appreciate your input!

Value extraction has been a huge issue in web3 since day one and I am not talking about the obvious here such as rug pulls, hacks and scams but individual and collective behavior. 

In our space where circular economics only exists in rare cases and the main use case of a token is only often governance it is hard enough to keep value together and “in the house.”

When big money steps in from outside it is being made impossible. Not sure who said it but an “economy without a conscience” will doom us all.