The idea that token holders can passively extract rent without providing equal value to a protocol is unsustainable.
In the long-run, token holders will likely need to be active network participants or assume some of the risk of the system to be viable.
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Delphi Digital has been analyzing and helping design token launching mechanisms for a long time. From the analysis, the team noted that there wasn’t a structure that could solve the above challenges and also align to its goals. The team then came up with Lockdrop and Liquidity Bootstrap Auction (LBA) to tackle these challenges. The first products... See more
In web3, the situation is different. New marketplaces can aggregate all existing NFTs. New social networks can surface all on-chain activities regardless of whether users ever signed up. How can a moat develop? A potential answer is tokens.
Game's sources and sinks are CRITICAL to develop a healthy economy of a game, both web2 and web3.It helps to shape a sticky user's behavior, and, of course, affects user attraction and retention.