I try to be optimistic about the future of Bitcoin scaling. The irony that I’m writing this on an Ethereum-centric website does not escape me.

This weekend’s take:

We’re going to get wrecked

The price of governance tokens (ahem, shitcoins) will infinitely trend to zero against Bitcoin. These things are practically useless and are simply ways for teams to raise funds and secure the bag for themselves and their respective investors.

All of the Bitcoin “L2” projects seem to be launching tokens. The quick paths to exit are nigh. Brace yourselves, hodlers.

“But the voting?!?!?!” Oh, please. Token distribution is a means of adoption and voting is a means of justifying it.

I don’t hate the teams launching tokens. I don’t necessarily hate the tokens. I dislike the incentive model that enables people to get rich prior to finding actual product-market fit. Build an L2, launch a token, dump on plebs.

But now the token’s launched, it’s trending towards zero, and everyone is market selling because your chain’s metric went to shit post airdrop. The answer?

More layers, more partnerships, more airdrops, more, MORE, MORE!

More tokens. The infinite ponzi (ahem, web3) never ends.

But more tokens means more money?! My friend, the small allocation you have been granted (or acquired…) will always be up against the larger allocations consistently selling for fiat or more valuable assets. The VCs, the team, the partners; they have enough tokens to appear infinitely aligned, and more than enough to exit comfortably.

My cynicism is neither severe nor unfounded. It’s in this weird position where I have accepted the game will be played, it will come to Bitcoin, and most of us will be wrecked and left behind in the process.

PS. At least make the token do something…