Tokenomics

The idea that token holders can passively extract rent without providing equal value to a protocol is unsustainable. In the long-run, token holders will likely need to be active network participants or assume some of the risk of the system to be viable. 1/

Amazon stock (or most growth stocks) is no different from "useless governance token". Amazon doesn't give dividend. Being a share "owner" is in name only, w/ no benefit except hoping other people'll bet on it too so price go up. All risk asset market valuation is mostly a meme

This is what great token design looks like 🧵

Predictions on tokens & DAOs: - Current governance tokens are trying to bake too much into a single token. Every DAO in the future will have multiple tokens—at least 3 - A DAO or protocol’s NFTs & social tokens will be more valuable than its governance tokens in the future