So far, this post has focused almost exclusively on tokens’ ability to capture value by generating income streams for their holders. They are productive capital assets. This may very well be sufficient to value most tokens in the long-run. Equity-like analysis will do the trick here. Think DCF and DDM.

However, valuing tokens based on cash flows... See more

Many cryptoassets today, particularly those within DeFi, also grant holders claims on a portion of protocol cash flows. This gives the tokens very quantifiable value, which can even be modeled by discounted cash flow analyses favored by traditional financial institutions. However, this has left many to wonder whether "pure" governance tokens, which... See more

Value Capture: Equity vs. Tokens