I was interested in testing to what extent ChatGPT being able to keep up with logic.

So I set up a simple game. 👇🧵 I described a physical situation for GPT and see how much of it it can reason through.

We give a little bit of information, then a little more. At each stage, GPT has to balance its understanding of space with its understanding of probability.

Ok, here’s a story about #DAOs, their evolution, and their on-chain/off-chain nature.

Back in 2014, @VitalikButerin wrote what is essentially Ethereum’s original position paper on this subject, the famous DAO/DAC post on ethereum.org.

👇👇 DAOs were quite abstract concepts back then, there were no such things in production.

There was also a sense that DAOs were something new, a revolutionary species of digital organization. And that they didn’t exist before because it was *smart contracts* that enabled them.

A thread/rant on the first item, The Web3 Inversion of Control Where Users Will Own Their Own Data.

We explain why this is cool, morally imperative, and is an inversion of control.

👇🪡🧵

https://twitter.com/jbrukh/status/1574413580446875649

Chances are, you probably use a mobile smartphone that runs on iPhone or Android. These are web2 technologies, but in fact they speak to web3 paradigms *a little bit.*

In particular, your phone has a small subset of Primary Data that is, in fact, owned by you.

It's going to take *a lot* more to move the needle on DAOs.

- more tools, more infra
- ways to manage tools and upgrade communities into new sets of tools
- mobile
- totally new communication modalities where a thousand people can coordinate on a proposal
- sentiment analysis - cross-chain interoperability
- legal frameworks
- DAO compatibility with legal frameworks
- new governance systems (1P1V, delegation, new cooperative game theories)
- actual leaders that lead DAOs in productive ways
- gradual decentralization
- scalability tech to lower costs

The short answer is the decentralized network. I’ll put it in context.

Today communication technology (Twitter) wants to be a public good. It’s clear: we communicate globally with Tweets every day. DMs are a resource not unlike air and water. And so on.

https://twitter.com/rufuspollock/status/1546776928220315652

It’s clear that this good should have governance (Should we let Trump stay? Should we tolerate speech X? How long should a tweet be?)

This good is “nominally public” (it trades as public equity). This good is effectively private (it is governed by a very small group of people).

This weekend I read a number of critical expositions of crypto/blockchain through the lens of anti-neoliberalist critiques. 🧵👇

Neoliberalism: essentially the view that state influence should be minimized in the economy, the free market should be deregulated, and... ...everything should be financialized.

I read a number of authors. I won't yet pick on them by name here, though I may in the future in a longer format.

But I felt most of their misconceptions either arose from a shallow understanding of blockchain reality and/or...

Four basic points of friendly advice for people coming from trad world to crypto interviews.

👇 1. We are an industry with materials, best practices, data, and thought leadership. It's all there. Study.

If you're applying to work researching blockchains, you should know how a blockchain works.

If you're applying to company building, you should have a sense of companies.

Please invalidate my assumptions.

1. Humans want to build and innovate, and so they will keep building and innovating crypto networks.

2. The asymmetry of new networks will always be greater than the asymmetry of established ones. 3. Interoperability of networks will be high especially on the consensus & execution layers.

4. The best game-theoretic strategy for most products is cross-chain aggregation.

5. Network switching costs approach 0 over time.

6. The marginal new participant has no brand loyalty.

I am obsessed with the idea of the power and value of coordination.

Specifically, the idea that cryptoeconomic mechanisms can coordinate people in and out of networks, thus creating a new valuation model — the “coordination premium”.

It’s a really powerful idea. For example, promotional cryptocurrency is a very primitive such coordination mechanism.

It basically says, pay a little bit of attention to our product. We’ll give you some value in return.

Unpopular opinion: floor pricing is a really terrible, suboptimal, divisive concept.

We should move away from it.

Allow me to explain. 👇 Floor pricing is an *excellent* concept, in the sense that it takes us from a world of illiquid NFTs into a world where NFTs trade like stocks.

Floor prices have highlighted the 0-1 innovation that happened here, after years of people saying that these assets will be illiquid.👏

I’m not being precise. Let me formalize the problem, a thread.

Suppose you have address A which contains asset X. I would like to move X to address B without creating on-chain data about. . . 👇

https://twitter.com/jbrukh/status/1426402022488686592

. . .the relationship between A and B.

If X is fungible, this is pretty straightforward. Just move X into Coinbase (an off chain ledger), then move from Coinbase into B after a random time. No on-chain correlation between A and B, except perhaps the tx size, easily fixable.

At @coinfund_io, on the venture side, we are trend driven and thesis driven investors.

That means we are looking at the overall technological trends in play, trying to form theses around their growth, building conviction across projects, and trying to position in trends early. One example of a trend we saw early was dexes (back in 2016, prior to AMMs).

Another was NFTs with our 2018 investment in @dapperlabs.

Another was broader DeFi in mid to late 2019 with @BalancerLabs and others.

Now the market seems ripe for DAO go to market companies.

Will DAOs be the next vertical to go mainstream? A nuanced question. 💡 👇

There are a few roads onto DAOs:

- DAOs are treasury technology for DeFi.
- DAOs are digital companies and organizations.
- DAOs are underlying financial coordination technology for consumers. If DAOs are treasury technology for DeFi, then DAOs going mainstream implies that DeFi has gone mainstream.

So, no, DAOs will likely not be the next mainstream vertical in this case.

#DAOs are going to go to market.

We are also in Day 0 of DAOs.

Today, DAOs are amorphous blobs of participants. They are usually very kludgy, expensive, and hard to coordinate with.

DAOs usually work on weighted voting systems, which is just one kind of decision making system. DAOs experience extremely low levels of participation and will usually fail unless some kind of leadership team pushes them forward.

They are also poorly integrated into the blockchain ecosystem such that most decisions have to be implemented on social consensus & trust.

How to invest in NFTs. (Note: not investment advice).

CREATORS: Your advantage is to take your creativity & labor and turn it into capital.

Mint some NFTs and sell them for $ETH. Now you can create a portfolio of cryptoassets and the work of other creators. MINNOWS (with small amounts of capital): Your advantage is early access to the community.

You will find NFT creators who will make it big before people with more capital. So find them. Join communities. Ask around. Support them. Get excited. Buy their assets early. HODL.

If anyone is confused about @radicle LBP event on @balancerlabs. . . please be careful and understand the mechanism:

- This is the price discovery event for $RAD and LP deposits are disabled.

- The weights of the pool will shift until the pool becomes a 50/50 pool after 48 hrs. - The weight dynamic creates downward price pressure, so at this time the implied valuation for $RAD may be high and may go down over time. (Take this into consideration before aping or YOLO'ing.)

Some thoughts on fractionalization as a price discovery mechanism for NFTs.

1. Capital Efficiency. As a first matter, the capital efficiency of such a mechanism is high: a few participants trade a few units to create an implied valuation for the overall asset. 2. Complexity. Fractionalization is a complex mechanism. It requires an entire token supply + trading volume for each NFT it appraises. Given there are probably trillions of NFTs, this heavy machinery is likely to be applied to the most expensive ones.

People refer to Bitcoin as a cryptocurrency and tokens as “altcoins”.

In other words, we have framed Bitcoin as money and tokens as alternative money to that.

That is an insanely skewed view of what is actually happening in blockchain.

Allow me to expand. If anything is alternative to the broader world, it is Bitcoin. So if anything, Bitcoin is alt-money.

Tokens are broadly *not* money. They are on avg more like equity. Also they are (in general) not BTC substitutes, they are innovations in their own right in their own verticals.

1/Rant!

I donate hours & hours of my time handholding newbies into blockchain. Prospective creators @edition1art, family, people curious about #DeFi, or non-finance/tech friends who are learning about crypto for the first time.

It's tough as it is to learn new paradigms. 2/When you get to explaining Ethereum transactions, it's intense. You have to explain how transactions work given a world computer, what "allowances" are for, and transaction costs.

Gas fees represent an insane barrier to entry, cognitively and economically, for new users.

Here’s what will happen when blockchain goes mainstream:

- Money will move at the speed of light

- Basic financial services will be available to everyone with a phone, globally

- Crowdfunding will become the predominant capital formation mechanism for organizations - Cryptocurrencies will become a major asset class for inflation hedging

- Marketplaces will be disintermediated by smart contracts, creating insanely efficient facilitation

- Creators will put their work directly on global, digital markets

Awesome podcast from @michael_saylor, deep diving into the corporate Bitcoin strategy for two hours.

podcasts.apple.com/us/podcast/btc… First key take away is that inflation is really a relative measure, and poorly expressed through the CPI.

Real inflation rates are much worse than they appear & the cost of your capital is not being compensated adequately by traditional investments like bonds and real estate.