Tokens of appreciating appreciation

Early versions of token distributions have led to unsustainable dynamics wherein speculators are rewarded instead of those who are adding consistent value to networks through actual usage.

We are likely entering a 2-4 year period where founders — Web3 founders in particular — will overshoot in their reliance on token incentives to drive their communities. Like Charlie Munger, they are right, but not fully right. We will learn a lot from their experiments and mistakes, but if you want your project to succeed, don’t forget the heart.

While short-term value may accrue to the token through gating access (e.g. to Discord, content, product, events, etc.), long-term value accrues when community members are holding to:

Now imagine the impact open source could have if people weren’t just incentivized by status or high-paying jobs, but also by value creation via tokens.