DPoS consensus protocol may not be adesirable approach for establishing a highly decentralized social media platform.

Just live with it now.

Just found how Ralph Merkle compared Bitcoin to life:

"Bitcoin is the first example of a new form of life. It lives and breathes on the internet. It lives because it can pay people to keep it alive. It lives because it performs a useful service that people will pay it to perform… It can’t be stopped. It can’t even be interrupted. If nuclear war destroyed half of our planet, it would continue to live, uncorrupted".

Instead of fully performance-based emission approach, we would see a lot of tokens succed with mixed Supply model.

1. Fixed Supply - the most usable and straightforward emission model. X tokens, Y month vestings for Z pools.

However, the emissions are not tight to the protocol adoption & revenue generation. The Supply is predefined and time-based.

1. Performance-based emissions are different. The Supply can also be fixed, however, the emission rate is based on the Network adoption triggers: TVL, Volumes, MAU, ARR or others.

It can be chaos - as it's impossible to predict the product success.

So we believe in traditional fixed time-based approach for VCs/Liquidity + all necessary for TGE allocations, however, Network Incentives are best emitted using Performance-based distribution.

@CoinstructLabs

Hyperliquid Success Summary - a real case of token success and Product-Market Fit in Web3

Hyperliquid has amassed $1.58 billion USDC in assets. The airdrop distributed 274 million HYPE tokens, driving the token’s market cap to $4.75 billion and its FDV to $14.2 billion. Hyperliquid's futures open interest has grown 58.5% to $3.55 billion, and its daily trading volume hit a record $9.79 billion. Its Assistance Fund, backed by USDC trading fees, has repurchased 567,083 HYPE tokens and generated $82 million in profit, while the Hyperliquid Provider Vault (HLP) has earned $45 million in PnL gains with a 34% APR. With estimated annual revenue of $94.41 million, Hyperliquid is now one of the most profitable crypto protocols. Data Source.

CEX Insights for October

Spot trading volume on major exchanges rose by 17% MOM. The top three exchanges by growth rate were Coinbase (61%), Gate (36%), and Binance (24%). Derivatives trading volume rose by 25%. The top three exchanges by growth rate were Bybit (61%), Bitget (30%), and Mexc (25%).

Source — link
@CoinstructLabs

Seeing a lot of bad takes on socials regarding Ethereum vs Solana right now.

It's about time we cut through the noise with a data-driven approach.

Let's compare the economics of the two networks across:

1. Value Accrual
2. Total Economic Value
3. Cost to Produce $1 Fee Revenue
4. Network Fundamentals
5. Performance & Valuation

It's both quantitative and qualitative.

1. Ethereum has done nearly $20b in all-time fees. Solana has done $495m, with 87% coming this year alone.

That said, Solana is catching up. It's done 41% of Ethereum's network fees (not including MEV) over the last 90-days.

If we include MEV, Solana has done 58% of Ethereum over the last 90 days and 77% over the last month.

1. In terms of Total Economic Value (Fees + MEV + Token Incentives), Solana ($1.19) has outpaced Ethereum YTD ($1.01b) over the last 90 days.

With that said, 79% of this is from Token Incentives (paid to stakers, dilutive as inflation to non-stakers).

If we only look at Real Economic Value (Fees + MEV), Ethereum ($2.6b) is still significantly outpacing Solana ($753m) YTD.

1. In terms of compensation to the supply side of each network, Ethereum has paid out $7b all-time to its validators (36%). $400m YTD.

4.Solana has paid out $247m all time. $212 YTD.

1. Cost to Produce $1 of Fees. Ethereum YTD = $1.28. Solana = $7.62.

@CoinstructLabs

Crypto buybacks

Today we will discuss such an important aspect of the supply side tokenomics as buyback.

What is a buyback and why is it needed? As it is easy to understand from the name, it is a buying of assets by the token issuing company from the circulation. Here are three reasons why it is being implemented:

==> Reducing float to a desired level

==> Artificial price level support

==> Attracting new investors

Buyback in crypto most often occurs as part of the token burn procces.

To recap, it usually involves the PoB (Proof-of-Burn) algorithm, when holders send an asset to a special address from which tokens cannot be withdrawn

@CoinstructLabs | Tokenomics