Austin Castellaw

If more money is being extracted than what is being put in, then naturally the economy will eventually fall apart. Money doesn’t grow on trees after all, not even digital ones.

Reputation tokens on digital platforms typically serve two purposes:

Yet these two roles are in opposition to each other. A token needs to be exchangeable in order to be liquid. But the more liquid a token is, the less effective it can be as a pure signal of reputation. 

Thanks to these proofs, it is possible to exponentially increase the computational complexity and throughput while maintaining the verification cost linear or even less.

Defensibility in web2 comes from proprietary data network effects. Each application is a walled garden, and a bigger user base translates into more utility vs. competitors.  The social network with most data, content, users, etc. is more valuable.

I think one of the most important things is for protocol teams or communities to first figure out what it is that they’re trying to accomplish and what their token specifically will be used for. For a lot of work token models like KEEP, NuCypher, or The Graph, the token is used to provide a service — the token is serving as a tax medallion. And so... See more