I’m having the same feelings now with moxie. This is the best implementation of Social-Fi that I’ve seen…by an order of magnitude.

Hey everyone! I'm excited to dive into a hot topic within the crypto space—FanTokens on Farcaster and how Moxie stands out as a shining example of Social-Fi. Degen-chad recently shared some of his thoughts on why Moxie feels significantly more compelling compared to everything else in the Farcaster ecosystem. With the old strategies evolving and price dynamics changing, have you noticed how sustaining value seems like more feasible than before? Let's parse through the structure, technology, and specific offerings like the unique auction mechanisms and underlying value I believe minimize risk. What are your perspectives? Are you sensing the potential too, or do you have reservations? Let's explore this together!

If you also want to read Degen-chad's post on directly on warpcast you can click HERE . Now let's dive in:

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"Farcaster raised $150M at a valuation of $1B. They do not plan to release a token. Moxie Market cap is under 3 Million. My bets on the “de facto” tokens of Farcaster are a complimentary combination of Degen, Moxie and to a lesser but not insignificant extent, Ham. I find Moxie to be the most compelling as it is interwoven into the fabric of Farcaster. You don’t even have to think about it or leave the app to use it. The fan token dynamics make it even more interesting. While it made sense to sell some of the airdrop and daily earnings we have moved beyond that point. Price has reached equilibrium and is now rising. Merely holding fan tokens is providing investment return as well as great utility with far boost and upcoming token gating. Moxie is not some “Me too” tipping token. I’ve never seen a product this polished at the “go live” date. This is the by far the best iteration I’ve seen of Social-Fi to date. And they didn’t just launch the project, high 5 each other and sit back and relax. They ship features and fix bugs at an incredible pace and don’t seem to have plans on slowing down. They are smart and determined with the largest team I’ve seen in a 2.5 mil cap project. I worked the last cycle on multiple teams for multiple projects with over 100 mil cap. The moxie team’s professionalism and talent is orders of magnitude better than those projects.

The Fan Token mechanisms are unique. The combination of an initial auction for fair and evenly distributed pricing, a logarithmic bonding curve, with aggressive built in buy and burn mechanisms provides a system with asymmetric risk-reward on the Moxie value of the fan tokens. In other words, if you buy at auction, you are much more likely to gain underlying Moxie than lose it. With the aggressive buy and burns, there is a built in “price floor.” There is more moxie locked than claims against it from fan tokens. There will always be exit liquidity, essentially un-ruggable. This is why I had no hesitation to lock large quantities at the start of a bull run. This is all of course, independent of the underlying Moxie price itself. There is risk there, but again, I think it’s asymmetric.

This reminds me a lot of my journey with Aerodrome and the AERO token. I was very early to Aerodrome. Bought a decent amount but really earned a ton of it farming LPs heavily. It was a great product, but I wasn’t super interested in holding another dex token. I sold hundreds of thousands of AERO between $0.02 and $0.10 and I thought that was great. I had become very impatient with the price and almost sold the last 50,000 for like 0.6 ETH, but I thought about it. The base narrative is strong. This is the best ever implementation of of a Solidly style dex. I’ll just keep this as a moon bag. And thank god I did. AERO proceeded to run to over $2.00. So instead of pocketing 0.6 ETH early, I pocketed over 30 ETH!!! Imagine if I had held more of it. I was happy with the 30 ETH, but it could have been 100 if I had been more thorough in my thought process. I’m having the same feelings now with moxie. This is the best implementation of Social-Fi that I’ve seen…by an order of magnitude. The Base narrative is strong. The Farcaster narrative is strong. The Airstack team is strong. This is a no brainer to me.

Do you want a little bit of extra pocket change from your daily claims? Or to you want to finally nail it on that “Make it Bag?” That’s your call, it’s your Moxie to do whatever you want with. I'm not telling you to buy anything and take any risk. I’m saying maybe keep that free Moxie you’re getting just for casting and replying for a legit shot at the moon."

And if you're still having doubts, you should read this post from mr-silverback

"Some important Fan Token Dynamics you may not know about. I want to talk about the bonding curve and what downside you have in fan tokens. When an auction ends a large portion of the auction spent moxie is put into the bonding curve. This moxie is the immediate reserve for withdrawals (i.e sells). So even at day 1 you wouldn't get a total loss as the last man out - but you would see a severe discount. What is ingenious is that as time passes this floor reserve for the last man out ratchets higher. The moxie used for the buy and burn buys the fan tokens and burns the token so supply isn't affected (only price). This moxie stacks on the reserve within the bonding curve. As more and more moxie is stacked into the reserve the higher the floor becomes on the fan token upon exit. This is why I was wrong to be so worried about a negative out regarding channels. Even in a doom scenario of them ceasing to exist - it isn't a lose everything situation."
NFA