Status Traps: Learning from Web2 Social Networks - a16z crypto

If we study traditional status mechanisms in society, just generally, it’s always the case that someone is always going to create something even more scarce to differentiate.

In many crypto projects, the largest holders end up being just the people who were aware of the project earliest. But those early adopters are not necessarily the most valuable to the future of the ecosystem. So it is essential to maintain incentives for ongoing contributions and engagement. One natural way to achieve this in a two-token framework ... See more