I’m not certain exit costs from blockchains are low.
To explain we need to define two types of exits:
1. Individual user exit
2. Group exit by forking
There needs to be another option. And that option needs to hold enough of the fundamental properties that you value to exit.
And what about network effects?
Interoperability b/w chains may lower this cost and the cost is lower still for non-SC “currency only” chains, but the cost is not necessarily “low”.
- The technical skill to fork and maintain the fork is high
- Trust, security (eg hashrate or stake/market cap), and network effects including real-world integration points are not easily carried over
The cost of forking is extremely high as it risks fragmenting network effects.
The costs of individual exit or forking of dapps is even lower and I suspect we’ll see plenty of hostile takeovers at that layer.
Finally, I agree that on-chain gov will probably prove inferior but it’s too early to say!
For individual exits, I’m referring to a scenario where an individual holds a reasonable proportion of their net worth in the underlying protocol—not a scenario where they are simply interacting with the app layer. Exit costs will be much lower there.
But I could be totally wrong on this. In 10 years we may live in a world of seamless chain/asset interoperability where entry and exit is fluid (and not taxed!).