Red Flag Alert: A Framework for Vetting Crypto Projects

In the following paragraphs, I will first argue that the current cryptocurrency market is extremely hostile to the cultivation of token-based DAOs, and then point out a huge flaw that’s intrinsic to token DAOs, and finally provide solutions that will not only help DAOs grow better & faster, but also get rid of the ludicrous idea that the rich shoul... See more

The most important takehome is that tokens are not equity, but are more similar to paid API keys. Nevertheless, they may represent a >1000X improvement in the time-to-liquidity and a >100X improvement in the size of the buyer base relative to traditional means for US technology financing — like a Kickstarter on steroids. This in turn opens up... See more

When you start designing the tokenomics for a project, or when you’re looking at a project’s tokenomics, one important question is how the tokens are going to get into people’s hands. The way tokens are released into the wild can have a significant impact on the long term success of the project, so it’s not something you want to overlook. And if yo... See more

Generally speaking the goal for you as the protocol owner should be to get your tokens into the hands of the right people (who will use your application and have a high CLV) – those that truly believe in your protocol. If they are not in the hands of users who truly believe in your team or product, they will probably claim and dump them (i.e. findi... See more

Early versions of token distributions have led to unsustainable dynamics wherein speculators are rewarded instead of those who are adding consistent value to networks through actual usage.