Thread by @RyanWatkins_

Recently I’ve been thinking a lot about how protocols can sustainably fund themselves - especially in the context of fair launches.

My thesis succinctly:

Pragmatism > Dogmatism.

Equity > Entitlement.

Live protocols > Dead Protocols.

Reality > Narrative.

1/

There was a moment over the summer when the community believed it could launch new protocols without venture backing.

This wave of “fair launches” provided the community with a number of DeFi’s most exciting projects.

However recently the community has also learned the challenges of launching without proper funding.

andrecronje.medium.com/building-in-de…

At the core is the insight that core protocols contributors of fair launched protocols are not always compensated well enough for their efforts and token holders are too entitled.

There’s a significant incentivize misalignment between token holders and core contributors.

So how do we properly incentivize the core contributors of these grassroots projects to work for the long-term in a way that’s self-sustaining?

Some quick thoughts on inflation, treasuries, incentive alignment, and the future of fair launches.

messari.io/article/on-inf…

TL;DR

Either use your existing treasury to fund development, buyback and redistribute to fund development, or mint the coin to fund development.

More so than any memes it's crucial that protocols create a way to fund themselves now and into the future.