So far, this post has focused almost exclusively on tokens’ ability to capture value by generating income streams for their holders. They are productive capital assets. This may very well be sufficient to value most tokens in the long-run. Equity-like analysis will do the trick here. Think DCF and DDM.

However, valuing tokens based on cash flows rem... See more

There is no free lunch here. Things that are good for the network inflate the circulating supply, which may be bad for token holders. If you’re a token holder who operates in the network, that’s fine: you’re OK with dilution if it means a lower take on your economic activity. If you’re a purely financial investor, that’s not as great. The float of ... See more

The long and short of it is that now, there’s a direct link between the token price and network volume. More volume creates more demand for the token. As the network grows, there will be more fees to buy more tokens from the open market.