# scaling to 10k ft: the fat alp thesis

> a critically acclaimed weekly consumer crypto roundup

**Published by:** [Seed Club](https://paragraph.com/@seedclubhq/)
**Published on:** 2025-01-03
**URL:** https://paragraph.com/@seedclubhq/scaling-to-10k-ft-the-fat-alp-thesis

## Content

bonjour, i send this newsletter to you as i sit perched precariously on a chairlift in the french alps (i am normal and can be trusted with working remotely). my fingers frostbitten from typing, the landscape as white and pristine as the pages of an unaudited stablecoin whitepaper - full of promise, devoid of detail. updates are sparse this week, having dedicated myself to an intensive study of french wine's effect on altitude sickness. preliminary results: inconclusive, but delightfully so. allons-y, mes amis and happy let's circle back season, xx cim on twitter btwSubscribeStaking $HYPE is now live on mainnet. Cambria had a successful mint on Ronin and there's a ton of growing excitement for user-owned gameplay. Zerebro announced it’s agent platform Zentients, and here's a recap of their year. In the lead up to Berachain launching Royco, Boyco pre-deposit vaults have amassed almost half a billion USD. Wayfinder rolled out phase 1 and are seeing great signup numbers. Winners stay winning i.e. ai16z, virtual, zerebro, arc are continuing to get the bid as AI infra outperforms agents and memecoins. Telegram rolled out a feature to turn digital gifts into NFTs. There's now a curated list of AI agent frameworks, launchpads, tools, tutorials, and resources. Smac dropped a great overview of how 2025 might shape up. Key takeaway: The incoming administration's policies on immigration and tariffs add uncertainty to the economic outlook, while key indicators to watch include the performance of semiconductors relative to the broader market and the strength of the US dollar, both of which could signal shifts in market sentiment and economic conditions. The Fat App ThesisDavid Phelps took a fresh look at Joel Monegro’s 2016 "Fat Protocol Thesis," which basically predicted that protocols (chains) would capture way more value than the apps built on top of them. The idea was simple: apps drive users to chains, which then boosts the value of the protocol tokens, much like a digital nation-state’s currency. For years, this theory seemed spot-on, as protocols raked in sky-high valuations while apps struggled. But Phelps argues the obsession with protocols has gone off the rails, creating a market where chains are treated like untouchable idols, even when they don’t actually do much.The Fat App ThesisWhy the upside is in appshttps://davidphelps.substack.comFast forward to 2024, and apps are making a comeback. Projects like Polymarket, pump dot fun, Hyperliquid are proving they can deliver real value by offering new user experiences that don’t rely on token speculation. Phelps calls this the “Fat App Thesis,” flipping the old narrative on its head. Instead of protocols driving value, it’s the apps that are pulling users in, and protocols are becoming increasingly interchangeable. The game has shifted: apps are where the magic is happening, while chains are just the rails they run on. Phelps doesn’t think protocols are doomed—far from it. But he’s clear that the future belongs to apps that can show users something new and exciting. The days of betting big on protocols just because they’re protocols might be over. If crypto wants to really grow, it’s time to back the apps that are driving the action and rethink how value is built in the ecosystem. Jess 🌱 @thattallguy apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps apps david phelps @divine_economy 2024 saw two generational changes in crypto: 1. the most hyped projects were, for the first time, apps 2. the most hyped protocols were the ones with novel ways to support apps for the first time in crypto history, we've moved from an infra cycle to an app cycle few 25 7:24 PM • Jan 2, 2025 Oldcoin Bad, Newcoin GoodJez’s guide, Oldcoin Bad, Newcoin Good, frames crypto as a massive multiplayer online game (MMO), complete with health, levels, online friends, pvp, pve, a town square, an economy. The piece dives into the unwritten rules of crypto investing, arguing that success often hinges on finding the right group to grind with, building real expertise in a niche, and avoiding common pitfalls like over-trading or tilting. Jez highlights the importance of collaboration, suggesting that joining a high-trust chat with ethical, resilient grinders can supercharge your journey. The guide also offers practical advice for picking a strategy that suits your temperament. Whether you’re a "trench warrior" chasing shitcoins, a "good new thing hunter" spotting underpriced gems, or a "stable farmer" playing it safe, the key is to develop an edge that scales. Jez emphasizes the shift in crypto from old coins to new narratives, where fresh tokens with strong fundamentals and flywheel effects tend to outperform legacy plays. The overarching message is clear: treat crypto like a game, but play smart. Find your people, and always stay adaptable as the meta evolves.Overheard on Crypto Twitter Jess 🌱 @thattallguy How to think about "founder bets" in crypto. The edges are NGMI. The sweet spot is category and product specific. 11 6:50 PM • Dec 31, 2024 Abdul @0x_Abdul i nominate this for the funniest crypto clip of 2024 3,299 5:30 PM • Dec 31, 2024 shark @sharkAster another angel in bushwick lost its wings 27.1K 2:20 AM • Dec 14, 2024 7213 | Ejaaz @cryptopunk7213 Oh…. ? Looks like @ai16zdao has formally announced plans to launch an Agent Infra Ecosystem… … with agentic value being driven back to their native token $ai16z Highlights: 1. Core focus of platform will be to enable agent swarms. This is key to unlocking the next… 1,320 1:57 AM • Dec 28, 2024 Larry Sukernik @lsukernik L1/L2 leaders who promote every single project in their ecosystem, good and bad, end up alienating the good and attracting the bad Quality over quantity, always 13 8:04 PM • Jan 2, 2025 The Cognition Stack for AI-native Companies & Why Sales, Support, & Social Are ConvergingLet's imagine the future construct of "companies," where a new cognition-based stack of technology transforms organizational design and peoples roles at work.https://www.implications.comSubscribe

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