Ethereum Tokenomics: Powerful Flywheel or Cycle of Doom?

Will stablecoin access fees be a material source of income for Ethereum and other token holders?  As stated above, stablecoins are generally backed 100% by liquid reserves and therefore do not result in any speculation on their prices. The larger centralized stablecoins such as USDC are not their own blockchains but instead are tokens that are... See more

There are two things I want to point out about this feedback loop. First is how much of the initial growth is driven by speculation. Because most tokens are programmed to be scarce, as interest in the protocol grows so does the price per token and thus the market cap of the network. Sometimes interest grows a lot faster than the supply of tokens an... See more

Most companies in the public market are valued on revenue or EBITDA; if revenue increases, so does the value of the stock...  As for tokens, it’s an open question. The valuation methodologies haven’t coalesced yet. Cryptoassets written by Burniske and Tatar in 2017 contemplates a few different models including velocity of money (mv=pq), discou... See more