Tokenomics

0/ Token incentives are a popular way to distribute ownership to people that provide a useful service But as we've seen, some of these distributions are easy to game and are less effective in hitting their key objectives Here's my framework for thinking about this 👇

Harsh Truth: As long as protocols are issuing more in incentives than they're making in revenue (aka turn profit), token price will go down (over a long enough time horizon).

Web3 applications lack some traditional sources of defensibility, but have a new powerful one: tokens. Let’s explore “token network effects” ⬇️