muneeb.btc Profile picture
21 Dec, 12 tweets, 2 min read
The people will own web3.

VCs have reduced power and ownership in crypto protocols. Tweet thread👇
1/ Founders, VCs, and employees primarily owned web2 companies. The general public couldn’t participate in any economic upside for the first 10+ years.
2/ Web3 protocols are different. These are not companies.

These protocols can launch through mining-only (e.g., Bitcoin, CityCoins), regulated public offerings (e.g., Stacks), Reg S, and Reg CF (e.g., on platforms like CoinList and Republic).
3/ Web3 founders deeply understand the power of community. 

Almost all successful protocols had early users and enthusiasts who ended up being evangelists, not merely because they were excited about the projects but also because they had direct economic incentives.
4/ This is in sharp contrast to web2 companies, where early users of Facebook or Twitter saw zero economic upside.

Protocols != Companies.
5/ So, what role do VCs play in web3 protocols? Can they have too much power?

VCs can help bootstrap new protocols, just like they fund early-stage startups. However, their role and power in crypto protocols is drastically reduced compared to web2 companies.
6/ Web3 protocols don’t have boards. Protocol changes typically depend on mining or economic power. VCs generally are not miners.

For economic power, VCs can have too much control if the token economics are poorly designed. Most top projects design token economics carefully.
7/ Once a crypto protocol is liquid, anyone can buy up an economic stake. This is similar to public companies. However, buying up 10% of a crypto protocol gives you far little power over the protocol than buying up 10% of a public company.

Protocols != Companies.
8/ Stacks economics were structured in a way that no single entity even has 10% of the liquid supply. No VC, founder, or entity holds even 10%.

Even large holders have little influence on protocol changes, e.g., independent miners decide on changes (similar to Bitcoin).
9/ In contrast to web2 companies, early community members can have an economic upside in web3 protocols (early Stacks holders are up 1,700%).

These active community members contribute ideas and improvement proposals. VCs are mostly passive while the community feels empowered.
10/ In summary, web3 drastically reduces the power and ownership of VCs. Venture capital still has a role, as it should in capital markets: it funds early-stage risky ideas.

Web3 is a net win for internet users. More power to the people!
P.S: Web3 opens investing opportunities to more people, which decreases the reliance on traditional VCs and makes the playing field fairer & transparent.

It’s not perfect but better than web2 ✌️

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More from @muneeb

23 Dec
Bitcoin maxi paradoxes:

- Love decentralization yet use centralized exchanges (no DEX for BTC).

- Love free markets yet hate venture capitalists (free market actors).

- Love open-source yet hate an entire revolution of new open-source apps.
- Love freedom to do what you want but don’t work on non-Bitcoin things please.

- Love freedom of speech but will censor devs from Bitcoin podcasts.

- Love Bitcoin as best money but only hold as passive asset please.

- Love truth-seeking but create thought bubbles to live in.
I love Bitcoin, am long BTC & have worked in the Bitcoin ecosystem for years. I have several friends who are on the maximalist side, but oh man, the discourse is rapidly getting worse!

Where is the open-minded, freedom-loving, intellectually curious community of 6-7 years ago?
Read 5 tweets
6 Dec
Bitcoin maximalism is limiting the growth of Bitcoin.

Retweet for visibility if you agree.

Tweet thread👇
1/ Bitcoin maximalism as a strategy for growing Bitcoin is failing.

The maximalist narrative has lost touch with reality. I say this as a Bitcoiner who started in 2013. I’ve held BTC through multiple bear markets & spent years building apps & protocols on Bitcoin.
2/ Bitcoin maximalism assumes a zero-sum world. However, we’re in an expanding crypto economy.

Attacking developers and new use-cases doesn’t help Bitcoin. It only encourages those developers and use-cases to move to other ecosystems like Ethereum and Solana.
Read 13 tweets
11 Nov
The bullish case for Bitcoin: beyond sound money.

Tweet thread👇
1/ Bitcoin found product-market fit as decentralized sound money.

People are already using it as an inflation hedge.

Estimates for future Bitcoin value range from $10 trillion (gold market cap) to $100+ trillion (subset of global wealth).
2/ The bullish case for Bitcoin as sound money is already well explored.

I recommend people to read this excellent article by @real_vijay:…
Read 10 tweets
29 Oct
Bitcoin NFTs represent Bitcoin culture.

This is a powerful emerging trend.

Tweet thread👇
1/ Humans are social animals. We thrive in communities.

Every community has its own culture represented in stories, art, symbols, and values.
2/ Digital communities have their shared culture going beyond physical borders.

In an increasingly digital world, digital communities become increasingly more important than geographic ones.
Read 13 tweets
24 Oct
I've been politely responding to criticism from @adam3us @notgrubles for weeks.

It's time to set the record straight RE Liquid vs. Stacks.

Please retweet to help educate people.

Tweet thread👇
1/ First of all, I highly respect the contributions of Adam Back and Grubles. We can disagree on some topics, but that does not take away my respect for them.

Let's dive into their criticism of Stacks and how it compares to the work they prefer: Liquid.
2/ Liquid is a federated (closed) network where you trust a handful of signers to operate the network and secure your LBTC (a Bitcoin-derived asset). 

Liquid has no connection to Bitcoin other than using LBTC, i.e., no connection for consensus, smart contracts, security, etc.
Read 17 tweets
24 Aug
Decentralized lottery game on Bitcoin.

How can this work? Tweet thread👇
1/ Satoshi Dice showed in 2012 how popular Bitcoin-based betting games could get.

Now with smart contracts for Bitcoin, developers can build much more sophisticated games. Let’s walk through a Powerball-like game.
2/ First, I’m not a lawyer, and any developer building such lottery games should consider appropriate laws in local jurisdictions. 

I’m interested in the technical design and possibilities.

Putting the legal disclaimer aside, let’s dive in!
Read 8 tweets

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