Web3

We’ve talked about crypto very little thus far. Blackbird’s membership cards are NFTs, its loyalty token is $FLY, and network participants can earn ownership in the network with $F2, but we’ve focused on what those different products do for restaurants and their customers, not on the nitty gritty of the tokens themselves.

That is a great thing.

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✍️ Rebasing tokens increase by token balance, while repricing token increase by token price.

Some investors prefer repricing tokens because they can be more appealing for tax purposes, potentially turning what would be considered income into capital gains , which may have different tax implications.

We covered a lot of ground here, so let’s summarize our key takeaways here:

• Cryptonetworks are not companies. Income/expense/profit metrics generally do not logically apply at this level. We can try to assess the profitability of all token holders, and/or subsets of them.


• PoS issuance to stakers is not a “cost to the network,” and it isn’t even a net

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Interestingly, Ethereum’s rollup-centric roadmap is implicitly a gambit in this direction. ETH is sacrificing REV to its L2s rather than capturing it all to itself, in return for spreading the moneyness of ETH the asset. It’s unclear if its L2s will win out, or if they’ll continue to aggressively use and spread ETH in the future, but it’s clearly t... See more

People will talk in circles here because “sustainability” is often poorly ever defined. So let’s be concrete. All PoW or PoS networks are fundamentally “sustainable” in that permissionless operators will always be incentivized to run them so long as users are willing to pay a nonzero amount of money to use them.

• If REV ≥ expenses required by operato

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It is commonplace to wager on the growth of wallets, accounts, people, videos, memes, art, transportation, media, space, you name it. Financial coordination at-scale is very different from the financialization of everything. The degree to which we gravitate toward shared social experiences has not changed, but the medium has shifted toward digital ... See more

In a cryptonetwork, token holders would also be unwilling to supply capital at a loss indefinitely if the token’s only value is derived from its ability to generate profits in the future. However, this gets into the unique properties and value capture mechanisms of crypto – tokens may have value capture outside of their ability to produce income.

• Example 1 – We all agree that a token is worth $1bn based on the potential income from earning it. However, they have some weird really high issuance, and you live in a place where that would create a huge tax burden. You probably won’t buy the token, but someone living in a jurisdiction that doesn’t tax their issuance rewards should be willing to

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Given this, we could say the total income (i.e., revenue) of all traditional PoS token holders = TEV. They are productive income-generating assets. Conversely, the total income of all PoW token holders = 0. For example, BTC holders have no rights to receive any TEV. BTC’s value proposition is as a monetary asset, not an income-generating asset.