This isn’t about where to invest, but where to build.

In Web2, value was primarily captured at the application layer, with protocols remaining relatively thin. The Fat Protocol Thesis proposed that Web3 would flip this dynamic, with protocols capturing most of the value while applications built on top would remain comparatively lean. But there's another layer.

meme /mēm/ noun

an element of a culture or system of behavior passed from one individual to another by imitation or other nongenetic means.

The Meme Layer: Fatter Than Protocols

While protocols may be fat, memes are even fatter—though they operate by different rules. Unlike protocols, memes are more permissive and resistant to direct value extraction. You can invest in a protocol token or a meme-coin, but you cannot easily invest in or own a meme itself. This distinction makes memes interesting as foundations for building upon, rather than investing in.

Ethereum: Protocol and Meme

Ethereum is both a protocol with a native token (ETH) and a powerful meme. The market cap of ETH roughly represents the protocol's value, but it doesn't capture the full scope of the Ethereum meme. When Base builds a Layer-2 on Ethereum's protocol, it pays fees and captures some added value, while also tapping into and extending Ethereum's meme value. Similarly, when someone creates Ethereum merchandise, they're building on and expanding the meme value, even though these sales don't affect protocol's market cap in any direct way.

Memes and Tokens

Successful meme-coins typically emerge from something that resonates with people—often humor or a zeitgeist moment. However, what's frequently overlooked is that these initial memes could evolve into something much larger: brands, cultures, or movements. Importantly, the value of this expanded meme ecosystem isn't necessarily bound to the original token.

Consider the /higher community: while the $higher token provides a unifying meme token, projects like Optimists, Higher Athletics, and LGHT’s NFTs could potentially exceed the token's value someday. Through initiatives like H-Combinator, new projects can leverage the Higher meme while potentially capturing a lot of their own value they create, with only some value flowing back to the original token.

I Contain Multitudes – The Luminous Ecosystem

This is how I’m thinking about Luminous, as an expandable meme. We can create structures that encourage meme expansion while maintaining connections between communities, and to the original $lum token. The creation of $lum gives us one example of such a structure: any trading activity on the $lum token benefits both Aether and Clanker (and their associated communities) through fee mechanisms, creating three interconnected but distinct memes. Sub-groups within Luminous, like the Art Council with its three tokens ($zenith, $vibrant, $together) and L.I.T. (which is working on its own mechanisms), can develop independently while remaining connected to the broader Luminous ecosystem.

Building Around Fat Memes

The most successful example of a fat meme might be Nouns. Having a central auction and treasury has been both a benefit and a challenge for expanding the meme. Big numbers attract attention to the meme, both the daily auction and the central nouns treasury, but deploying those central funds in ways that successfully expand the meme has been challenging. 

Projects like Luminous and Higher demonstrate how memes can be structured to encourage growth while maintaining beneficial connections between different branches of the ecosystem.

This approach to memes suggests a new way of thinking about value creation in Web3. Identifying "fat memes" or "cosmic memes" helps creators spot opportunities for building and expanding existing cultural momentum.

The key is recognizing that memes can be given structures that encourage expansion while providing clear pathways for contribution. These structures should promote incentive alignment while allowing for independent activity and innovation. The result is an ecosystem where value creation becomes more meritocratic and distributed, even as it remains connected to its origins.

Looking Forward

As we continue to explore the potential of cosmic memes, we should focus on identifying memes with significant building potential and developing structures that enable them to branch and grow. This isn't about speculating on meme-coins, but rather about finding and nurturing the memes that can serve as foundations for meaningful creation and community building in the Web3 space.

I created the /CSMM channel, inspired by $CSMM token (or “Cosmic Meme”), which is a ticker and title that Clanker came up with. At first I didn’t like the name, but then thinking about the secondary definitions of “Cosmic” and “Meme” it has grown on me. I propose we use the channel to surface “fat memes” or “cosmic memes.” To clarify, it’s not the place to talk about speculating on meme-coins (though the memes may have those attached as well). Instead, it’s a space to talk about what might be good memes to build around, and what structures can enable the meme to branch and grow, creating new value along the way.