Thread by @KyleSamani

0/ A thread on the DDEX/Hydro fork of 0x $ZRX

TLDR: we have a meaningful data point to substantiate the "governance is not value-able" hypothesis

medium.com/hydro-protocol…

1/ So, why did they fork?

"Being on the front-lines, it is painfully apparent that most DEXs today still are plagued by rudimentary problems such as order collision, front-running, and poor liquidity."

2/ this tells us that the 0x protocol has a wide set of "customers", and the core 0x dev team does not have the resources to adequately support all of them concurrently (though this could theoretically change in the future)

3/ perhaps more importantly, let's consider what the blog post doesn't say

it doesn't say *anything* about the cost of leaving the ecosystem, or governance in the protocol

it therefore implies that there is not much value in staying other than the free dev work from the 0x team

4/ ZRX is trading at ~.25, implying a fully diluted market cap of ~$250M. And it's approaching an all time low

Here's the interesting thing about governance: the higher the token price, *the more expensive governance becomes*

5/ Relayers are arguably the most important type of stakeholder in the 0x ecosystem

DDEX has been responsible for ~33% of all 0x-based trades in the last 30 days

6/ If a relayer responsible for ~33% of network traffic is exiting the network when the price is $250M, that is just about the most negative signal possible from someone who has serious skin in the game

At this point, it's hard to make the case for the value of governance

7/ Multicoin doesn't have any exposure to ZRX, long or short

{fin}