Ethereum

Yes, we’ve scaled via rollups, but one of the few remaining use cases for Ethereum is settlement and DA. If the very few applications that actually accrue any source of value back to Ethereum are forced to leave due to constrained DA capacity, what source of value will Ethereum have left?

The more time passes, the more I believe crypto natives have completely lost the plot on ETH and that’s it’s becoming impossible to replicate the product that Ethereum has built.

At this point, no other ecosystem is even attempting to create a WWIII-resistant, globally shared settlement system. And as we’ve come to understand, you can’t... See more

At the end of the day, continued fiscal deficits will increase US public debts, which requires more liquidity, more monetization and more currency debasement.

Which is good news for holders of scarce assets (equities, RE, gold, BTC, crypto).

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

Recently the term REV (Real Economic Value) was coined – representing the subset of network activity that directly compensates the protocol for providing security and state maintenance. This includes:

• Base fees collected for transaction inclusion


• MEV tips that pass through to validators or stakers


• Blob/data availability fees in the case of modular

... See more

And now, I think what comes next is real consumer tokens. Tokens that combine the expansive ambitions of top infrastructure projects, with the belief systems, cultural value, and social properties of memecoins. Tokens connected to product and social experiences that people actually care about instead of vaporware. Tokens from projects that are... See more

Based rollups use the L1 for consensus, data availability, and settlement layers, while handling execution independently.

In a traditional rollup, users send their transactions to a dedicated sequencer — essentially a single machine operated by the rollup team. This sequencer is responsible for collecting user transactions, determining their sequence, and packaging them into blocks that are posted on Ethereum.

It seems obvious that applications, not general-purpose networks, will capture the majority of cash flows generated in these systems over the long-run. This is already playing out. Apps have all of the leverage and pricing power with the end-customer. There’s still a big question though – how much MEV leakage will these apps leave around for the... See more