DeFi
DeFi Dynamics. Exploring the Future of Finance.
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Because much of the current technology startup space is determined by big checks from institutional investors, and they want to see DAU metrics. The checks are required to hire smart people to work on cutting edge tech, and no one works for free99. If you're going to start a chain, you pretty much need $300M minimum.
Many of these alt L1s and L2s have completely flopped by offering initial airdrop rewards to boost DAU metrics, so they can get these raises. What should be noted is that it's a classic case of subsidizing demand, and I imagine many VCs got burned so badly on this framework that they are tired of it. As soon as these tokens drop, not only do the initial investors, but the farmers, have zero incentive to participate in the network by providing capital or using the chain.
The state of the art is obviously just subsidizing demand to get a fat venture capital check, roll into a Swiss foundation, and live the rest of your life in a quasi-trust fund. There's a reason Sequoia is just not doing anymore crypto investments, because no one is doing anything novel to get long term equity holders and capital locked on the chain. Not to say some of these technologies aren't great, and many genuinely do have great emissions and long term mechanisms to grow, but we just aren't doing equity distribution of global technologies correctly.
As long as we keep throwing chum into the water, the sharks will appear. 0 reply
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