0xFc2b
July 1st, 2022

In just a few months, “NFT” has practically become a household term in 2021. Trading volume surged past $10.7b in Q3. Visa bought a CryptoPunk for $150k. Quentin Tarantino announced he was auctioning never-before-seen scenes of Pulp Fiction as NFTs. Taco Bell, Burger King, McDonald’s, and Pizza Hut minted their own NFTs.

Clearly, NFTs are here to stay; while many have explored different methods of classifying and valuing fungible tokens, few people have considered a framework for value drivers for this nascent asset class.

Andrew Steinwold — founder and GP of Sfermion — is widely considered a thought leader in the NFT space. His Zima Red piece on NFT value drivers buckets the assets into collectibles, game assets, virtual land, crypto art, and then everything else. I think he provides a valuable categories for exploring the asset class, and I hope to go a level deeper and simplify his taxonomy by exploring overlapping drivers of value for NFTs. I argue there are three main types of NFTs based on their source of value: income-generating, status, and utility NFTs.

Source: Derek Walkush
Source: Derek Walkush
0xFc2b
April 28th, 2022

Introduction

Since the summer of 2020, the DeFi ecosystem has been experimenting with progressive decentralization – that is, the process by which founding teams of token-based startups relinquish control of their networks over time. Of course, crucial to that process is the distribution of tokens. In this piece, we’ll be diving into three of the key trends we are seeing in token distribution, with some actionable guidance for early stage teams.   

Until recently in DeFi, token distribution usually occurred through liquidity mining (LM) incentives and public sales. But that convention is changing – and quickly. TVL in DeFi has exploded ~5x over the past year and traditional LM programs have fallen out of favor, largely due to the abundance of capital and many LPs having dumped their token rewards. 

Instead of solely bootstrapping initial liquidity, many newer projects have used tokens to acquire long-term community members. With this increasing liquidity, protocols are able to be more selective and better attract long-term stakeholders. 

0xFc2b
December 25th, 2021

In just a few months, “NFT” has practically become a household term in 2021. Trading volume surged past $10.7b in Q3. Visa bought a CryptoPunk for $150k. Quentin Tarantino announced he was auctioning never-before-seen scenes of Pulp Fiction as NFTs. Taco Bell, Burger King, McDonald’s, and Pizza Hut minted their own NFTs.

Clearly, NFTs are here to stay; while many have explored different methods of classifying and valuing fungible tokens, few people have considered a framework for value drivers for this nascent asset class.

Andrew Steinwold — founder and GP of Sfermion — is widely considered a thought leader in the NFT space. His Zima Red piece on NFT value drivers buckets the assets into collectibles, game assets, virtual land, crypto art, and then everything else. I think he provides a valuable categories for exploring the asset class, and I hope to go a level deeper and simplify his taxonomy by exploring overlapping drivers of value for NFTs. I argue there are three main types of NFTs based on their source of value: income-generating, status, and utility NFTs.

By: Derek Walkush
By: Derek Walkush
0xFc2b
December 25th, 2021

Decentralized Autonomous Organizations (DAOs) are communities of tokenholders dedicated to the long-term success of a protocol through a shared mission based upon codified rules on the blockchain. Unlike traditional companies, DAOs are transparent, permissionless, and global, reflecting broader qualities of blockchain technology itself.

Source: Aragon
Source: Aragon

Many ignore the more human organization layer when examining the crypto ecosystem, and instead focus heavily on the technology (granted I make some broad generalizations breaking it into two buckets). The purpose of this essay is to show the importance of that organization layer and its implication for the entire ecosystem.

By Derek Walkush
By Derek Walkush