, 9 tweets, 3 min read Read on Twitter
1/ Published an expansion of the 2017 #cryptoasset valuations piece, bifurcating into cryptocapital & cryptocommodities, two groups with fundamentally different models of value capture: placeholder.vc/blog/2019/4/26…
2/ The primary point of bifurcation boils down to what's a "productive asset" (cryptocapital) vs a "non-productive asset" (cryptocommodity).

The equation of exchange (MV = PQ) only applies to the non-productive subset of cryptoassets.
3/ Any cryptonetwork that requires ownership of the native cryptoasset to gain access to a recurring value stream generated by the network,​ t​hereby creates a capital asset as opposed to a commodity.
4/ Translating this to cryptoland, any asset that is staked, bonded, or otherwise committed in order to get a claim on value flows can be considered cryptocapital.
5/ Cryptocapital will take inspiration from its capital asset peers, and as a productive​ asset its value will be calculated as the net present value (NPV) of annual value flows to supply-siders.
6/ Meanwhile, the equation of exchange (MV = PQ) remains our best bet at pricing ​non-productive​ cryptocommodities, where PQ = annual transaction volumes using the native asset.
7/ Note that “annual value flows to supply-siders” and “transaction volumes” are separate metrics, and serve as the respective linchpin metrics for cryptocapital and cryptocommodities.
8/ Not only is it important to understand these differences as an investor, but as a builder the means to value capture (or lack thereof) should influence what you're designing, and how you choose to govern it.
9/ That's the cliff notes, I'll leave the nuances for the paper. Thanks again to @jmonegro @BradUSV @alexhevans @mlphresearch, all of their minds are in the work, and also to @HASHCIB for help in the crafting.
Missing some Tweet in this thread?
You can try to force a refresh.

Like this thread? Get email updates or save it to PDF!

Subscribe to Chris Burniske
Profile picture

Get real-time email alerts when new unrolls are available from this author!

This content may be removed anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just three indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!