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lawson baker : 88发 babafa @lwsnbaker
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Performing trust-minimized work for a protocol (aka "generalized mining") is a different narrative than most realize.

This is not portfolio theory.

This is a narrative on the evolution of the internet
...and how you invest in it.

Let me explain 👇
Internet made information cheap and free.
Netscape gave us a portal to look into this information.
Google indexed the information.
Facebook connected friends to exchange information.
Uber and Airbnb connected strangers to exchange information (work orders).
Bitcoin allowed strangers to pass around trust-minimized work + information (money).
All successful cryptocurrency projects will be judged (and valued) by their ability to pass around different versions of trust-minimized work + information with protocol-level incentives.
Staking 👏 is 👏 a 👏 baby 👏 idea 👏 in 👏 a 👏 much 👏 bigger 👏 idea.

[me irl right now]
Many of this trust-minimized work will become micro-services powering the internet infrastructure of the future.

See Handshake and root zone DNS resolution.
Some of versions of trust-minimized work will be mechanisms to allocate capital on-chain or secured by the chain towards a demonstrable cash-flow on-chain or secured by the chain.
A Working Fund takes advantage of the opportunities with 3 objectives:

| 1 | Security
: don't lose the tokens

| 2 | Appreciation
: only pick tokens you are willing to be over an extended time frame

| 3 | Cash-flow production
: do the work + produce more tokens.
A working fund and generalized miners recognizes that to participate in this new version of the internet, you must perform the work.
State differently, investing in this new version of the internet will not be like 1990's, 2000's, or even the 2010's.

Investing in this version of the internet supported by trust-minimized work and information requires direct participation in the network.
Value extractors will be left behind.
In some cases, mechanisms to allocate capital on-chain towards a demonstrable cash-flow on-chain will be security tokens.
In other cases, mechanisms to allocate capital on-chain towards a demonstrable cash-flow on-chain will NOT be a security token.
There will not be elements of control.
And, there will be no extraction by a third-party capital allocators.
In the world of open-sourced software built on blockchains, all the business secret sauce is exposed. Absent continued development and support by the creator, we will always trend towards forks and copy-cats that return all the value to users rather than extract.
Incentives allows users to replace shareholders by encouraging participation and discourages passive participation.
That's it. That’s the Story of the Internet. That's the Working Fund Hypothesis. That's the Security Token Hypothesis. That's Capitalism has Competition Hypothesis.
@nlw, think you'll like this one, too. This sums up a lot of narratives.
@APompliano some of this is up your alley, as well.
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