Tokenomics

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).

The Web 3 playbook: using token incentives to bootstrap new networks. 🧵

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/