1/ Investors continue to extol blockchains for "decentralization". But we already have many technologies to do so: IPFS, datproject, Bittorent, etc
What they’re actually promoting blockchains for is the ability to create MLM schemes on-demand with a large supply of greater fools
What they’re actually promoting blockchains for is the ability to create MLM schemes on-demand with a large supply of greater fools
3/ The problem with these biz's is not that the equity mechanism is flawed. It’s that the moat of the biz *grows too large* and they can extract a rent instead of adding value. What we need is more competition, not a new incentivization mechanism. Fee != rent if it’s value add
4/ Unpegged utility tokens are not the solution. Equity aligns incentives because everybody is in the same boat and because its value closely tracks business fundamentals. As usage of the business increases so does cash flow and the value of the stock
5/ Utility tokens do not have this same mechanism. The only way it increases in value is if more wealth is in held it. The usage of the business and the $$ held are not linked like they are with equity because there's no legal recourse to usage. It's extraordinarily uncertain
6/ Meanwhile, dapps are launching at valuations > $200m and founders are making $100m+ on this promise. Usage may increase but investors only make $ if they convince others to hold more.
Later investors are stuck betting on more greater fools given the lack of fundamentals
Later investors are stuck betting on more greater fools given the lack of fundamentals
7/ Instead of aligning incentives, tokens and ICOs are actually doing the opposite. Investors are funneling money to founders at high valuations based on the assumption that their token will increase in price as the protocol"does well". But that won't be the case for many.
8/ It would be 1 thing if there wasnt another way to decentralize a system but that’s not the case.Blockchains dont merely enable decentralization but both decentralized and digital scarcity. Money must be scarce and blockchains were the 1st way to do so decentralized + digitally
9/ Theres already *awesome* peer to peer / decentralized tech out there. Beaker + datproject allow you to fork websites on the p2p web for example. This could dramatically increase competition for centralized businesses. So you need to ask yourself why the blockchain dApp hype? 
10/ The *only* reason many of these dApps need a blockchain is because of the token that’s bolted on. Tokens need to be scarce and then you can justify a blockchain. But the token has nothing to do with decentralization-- it just brings in the hype around easy MLM fueled gains
11/ There's currently virtue to "being on a blockchain" that founders are exploiting when it's not additive to fundamentals whatsoever.
Utility tokens, in their current incarnation, which were proposed as a mechanism to finance an open source app, are on the precipice of failing IMO. dApps, should they proliferate, will likely need to transition back to a equity like model with revenue share and ties to cash flow
