MEME VS Govern tokens can modify the cause

Author: YASH AGARWAL Source: Medium Translation: Good Ouba, Bit Chain Vision

A16Z’s chief technical officer recently argued that the currency was not attractive to the “builder” and “if the external nature is considered, it may even be a negative effect.”

He described the coin as “a series of false commitments to cover the casino”, “the way the public, regulators and entrepreneurs look at cryptocurrencies”, and “technically uninteresting” and so on.

At the same time, Chris Dixon published an article about the more calm theme, emphasizing the systemic absurdity of the US securities law system -emphasizedThe best projects are in the deadlock of supervision, but the coins eventually survived because they “did not pretend that the obliged investors depend on the management of anyone.”This implies acknowledging the camouflage (pretending behavior) of other parts of the cryptocurrency field -various teams make management work for the agreement, and at the same time we call them govern tokens.

Our goal is neither defending the Lost (or governing token) nor degrading them; it only advocates a fair token issuance.

Governing tokens is MEMECOIN with extra steps

I think that all governance tokens are essentially the factors, and their value depends on the origin of the cause of the agreement.In other words, governance tokens are wearing suits in suits.Why?

Generally, the governance tokens do not provide any income sharing (due to the security law), and they are not particularly good as a community -oriented decision -making framework (holding is often concentrated, participating in indifference, or DAO is usually functional disorders) -the extra through additional)The steps make them useful as a mold.Whether it is ARB (ARBITRUN Governance tokens) or WLD (World Currency tokens), they are essentially the factors that are affiliated to these projects.

This does not mean that governance tokens are useless.In the end, their existence reminds people why law needs to be updated.In other words, governing tokens will cause the same harm as the factors in many cases:

For the builders: Many well -known venture capital support to the governance tokens have been launched before the product was released, causing a huge disillusionment.This directly damages the credibility of the founder who has been working hard for many years.For example, Zeus Network was launched with a $ 1 billion FDV before its release, and many founders were difficult to achieve such valuations even after achieving huge attractiveness.
For communities: Most of the governance tokens are supported by venture capital, issued by high valuations, and gradually sold to retail investors.

Study ICP, XCH, APECOIN, DFINITY and other projects, and even the ICO in 2017 is more desirable than the current low circulation tokens supported by venture capital, because they are more fair, most of the supply is unlocked when it starts.

Let’s look at the example of Eigenlayer:

EIGENLAYER can be said to be one of the largest Ethereum agreements in this round of this cycle and a classic example.Insiders (ventures and teams) hold a large part of tokens, accounting for 55%, while the initial community airdrops accounted for only 5%.This is a typical low circulation, high complete dilution valuation (FDV) gameplay, supported by venture capital, they hold 29.5%.In the previous cycle, we blame FTX/Alameda, but this cycle has not improved.

EIGENDAO is governed by EIGEN tokens. It now seems no different from any web2 governance committee, because insiders control most of the supply (the community supply was only 5%at first).Not to mention, the entire concept of Eigenlayer is to re -mortgage (leveraged income), which makes its financial engineering like the Ponzi scheme like the mini currency.

If a group of insider takes away more than half of the supply (55%in this example), then we are seriously hindering the re -distribution effect of cryptocurrencies, and let a few inside people get rich through low circulation and high FDV release methods to become rich.EssenceIf inside people are really confident, considering that the valuation of tokens is highly high, they are better to get some distribution.

If a group of insiders occupy more than half of the supply (55%in this example), we will seriously hinder the re -distribution effect of cryptocurrencies and distribute it through low circulation and high FDV distribution to make a few inside people extremely rich.If insiders really believe that considering the valuation of tokens is an astronomical figure, they are best reduced.

Please stand up behind the real scenes?

In view of the absurdity of the capital formation process, the venture capital blame emoji and emoji creators are ultimately responsible for venture capital. The creators of emoticons are blame the venture capital, which has caught the whole field into the quagmire of the chaos and serious damage to seriously damage the reputation of the builders.

But why is venture capital so harmful to the tokens?

There are structural reasons for venture capital to raise FDV.For example, a large venture capital fund invested 20% of the $ 4 million in $ 20 million; logically, in order to benefit their limited partners (LP), they must generate incidents in the tokens (TGE) The FDV is raised to at least $ 400 million.The agreement was pushed to the high FDV as possible to increase the value of the tokens of seed/seed investors.

In the process, they constantly encourage projects to make higher valuation rounds of financing.The larger the fund, the more likely they to give the project a ridiculous high -private valuation, build a strong narrative, and eventually issue tokens with higher public valuations, forcing retail investors to sell during the issue of tokens.The distribution of high FDV will only lead to spiral decline and zero market awareness.Study Starkware.

The lower FDV distribution allows retail investors to profit from re -pricing and helps the formation of communities and market awareness.Study Celestia.

Retail investors are more concerned about token unlocking the issue of tokens than ever before.In May alone, Pyth will unlock $ 1.25 billion tokens. Avalanche, Aptos, Arbitrum and other projects will also unlock hundreds of millions of tokens.Please visit tokens.unlock.app to see all the tokens that are about to unlock.

Memecoin is the product of the collapse of the financial system

It can be said that Bitcoin is the largest and oldest coin, which was born after the 2008 financial crisis.Negative interest rate/zero interest rate (interest rate -inflation) forces each savior to speculate the new popular asset category (eg, the coin).The zero interest rate environment has created a market that is full of zombie companies that rely on continuous low -cost capital to maintain their livelihood.Even a top index like the Standard 500 Index contains about 5% of zombie companies. As the current interest rates rise, the situation of these companies is about to deteriorate, and it becomes no different from emoticon currency.To make matters worse, these zombie companies are also recommended by fund managers, and retail investors are buying them every month.

There is a reason for the never death.For this cycle, they are the cause coins.

In this context, the term “financial nihilism” has recently attracted much attention.It summarizes such an idea: the cost of living is stifling most Americans, and the opportunity for upward flow is out of reach for more and more people. The American dream has become a large extent.The median ratio is at a completely unsustainable level.The potential driving factor of financial nihilism is the same as the driving factors of populism. Populism is a political tendency to meet the ordinary people who are tired of the established elite -“” This system does not work for me, so I want to try some very much”Different things” (for example, buy Boden tokens instead of vote for Biden).

Oynaming is testing for infrastructure:

Monchen currency is not only an excellent tool to attract newcomers to join cryptocurrencies, but also a great way to test infrastructure.We believe that, in contrast to the A16Z position, aluminum coins have a positive net impact on any ecosystem.Without the coin, blockchains like Solana will not face network congestion problems, nor will they find all network/economic loopholes.The factors on Solana are generally positive:

All decentralized exchanges (DEX) not only dealt with the highest historical transaction volume, but also surpassed their peers on Ethereum.
The currency market integration coin is increased to increase the total locking value (TVL).
Consumer applications integrate aluminum coins to attract attention or for marketing purposes.
Verivers earn huge costs due to priority costs and extracted maximum value (MEV).
Due to the increase in liquidity and activity, the wide Defi field has a wider network effect.
Solana Wallet Phantom has 7 million monthly active equipment (to attract ordinary users to add drivers by alumin currency) -it may be one of the most used applications in the cryptocurrency field.

For serious decentralized real -world assets (RWAS) on the chain, we need to have sufficient liquidity (please check the top almed coins; except for L1 token/stablecoin, they have the deepest liquidity), after passing), afterDEX and a wider Defi infrastructure of stress test.Moncot is not an interference; they are another asset category that exists in the shared book.

Mergin currency as a financing mechanism:

Oy Coin has now been proven to be an effective capital coordination method.Study pump.fun, which promotes the issuance of nearly millions of aluminum coins and creates billions of dollars for the coin.Why?Because for the first time in human history, anyone can create a financial asset in less than $ 2 and 2 minutes!

Mergin currency can also become a DOSKONA (Doskona is Portuguese, without suitable Chinese correspondence words, which means “perfect” or “excellent”) fundraising mechanism and listing strategy.Traditionally, the project is distributed to venture capital (VCS), developing products by allocating a 15-20% share, and then raising a large amount of funds to issue tokens through emoticon packages and marketing.However, this often causes the community to eventually be abandoned by venture capital.

In the era of aluminum currency, people can raise funds by issuing their aluminar currency (no roadmap, just for fun) and forming a blog -type community as soon as possible.Then, they can continue to build applications/infrastructure, and continue to add practicality to coins because they are not required to make false commitments or provide roadmaps.This method uses the Bagholder Bias of the Alcohol community (Bagholder Bias -Refers to the psychological state that holds a large amount of loss assets to underestimate its losses and overestimates its rebound potential) to ensure the high participation of community members. TheyIt will become your business expansion/marketer.It also ensures a fair tokens allocation, and the low circulation and high -complete dilution valuation (FDV) of the voids are raised and sold.

This is already happening:

1.bonkbot is a telegraph robot (peak daily trading volume of 250 million US dollars) from Bonk’s coin. It uses a 10% transaction fee to purchase and destroy BONK.It only destroyed a total of about 7 million US dollars by expenses, so that its economy is consistent with the holder.

2. One of the coin Degen in the FarCaster ecosystem, allowing the publisher to use Degen award/reward to publish high -quality content.In addition, they also built a L3 chain for decentralized applications.Similarly, Shibatoken, one of the most popular coins in the previous cycle, is now building a L2.

This trend will eventually lead to the integration of aluminum and governance tokens.It should be noted that not all factors are equal, and scams are common, but they are more likely to be exposed compared to fraudulent fraud implemented by venture capital.

Future Outlook

Everyone wants to participate in the next big event as soon as possible, and the factors are one of the areas that a few retail investors can get involved earlier than most institutions.Due to the limitation of the threshold of venture capital (VC) private equity transactions, the factors provide better potential market fit for retail investments.Although Oynan returns power to the community, but also makes cryptocurrencies look like a casino.

So, what is the solution?Ventures like A16Z should unite their transactions and allow anyone to participate in it.Echo and other platforms are very suitable for this situation.

Suggestions for venture capital: Put your transactions on Echo, let the community participate in joint investment transactions, and witness the community to gather the magic of the Model -like coin from the early stage of the project.

In order to clarify, we do not oppose venture capital/private financing; we advocate more fair allocation, create a fair competitive environment, and give everyone the opportunity to obtain financial autonomy.Volcanic investment should be rewarded due to its early adventure.Cryptocurrencies are not only about opening up and unauthorized technology; it is also related to making early financing more open and transparent, which is currently as opaque as traditional startups.