Thread by @0xSato

Many keep asking: What's the max supply? What's the inflation? But never asking how does it work? Who are competitors? Why would it succeed?

Why?

I don't know. The questions asked are most important for BTC/DOGE/SHIB, but not for #DeFi projects.

Here is why 👇

1) For #DeFi projects, you should ask more about who are the team? Are they reliable? Is the code good? How about the business model? Who are competitors? These are much more important than token supply/inflation.

Is tokenomics not important at all?

Yes, they are important. 👇

2) Everyone is feared of inflation, as happened in fiat. Each token minted means you are diluted.

But here is the point: Is the token minted useless?

Since $DOGE is utility token and doesn't generat revenue, that each $DOGE minted means you are diluted.

How about #DeFi ? 👇

3) #DeFi generates revenue, making it more like a business. Tokens can be minted for team/VCs/farmers/holders. Minting means the business is funded.

We should not forbid a business to get funds.

Instead we should ask: What are the funds for? How will it be used? Who benefits?👇

4) If the team is not interested in money. & There's no VCs. & Team is smart. & Team has good track record. & You can track the minted funds. & Funds are used for the right purposes.

Why would you be worried?

The minted funds are working for you, the holders. 👇

5) If you count farming rewards, most #DeFi projects are losing money. Check $CRV, $SPELL.

But does it matter?
No. This is how businesses work. Unicorns work this way too. You lose money to occupy the market.

The point is you have huge revenue. You will have net earnings later.