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Blog iconUDHC
Nov 13

Valuing Governance Tokens

TLDR:Governance tokens are critical assets to manage protocols, but currently get their value from second-order effectsThe delegation framework is a first step, but just a stopgap to a larger problem.Governance token holders should be rewarded for contributing, with payment coming directly from protocol revenue.What directly and inherently incentivizes someone to contribute to managing and steering an onchain protocol? The blunt, unfortunate answer, is nothing – incentives are generally intan...

Most popular by UDHC

On Optimal Decentralization

On Being Sufficiently Decentralized

The Arc of Decentralization

The Greatest Advantage Handed to the US on a Plate - Stablecoins

The Compliant Arc of Decentralization

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Tornado Cash Should Not Die in Vain: An Alternative Approach to Regulating DeFi

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UDHC

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UDHC

An initiative to bring DeFi to the mainstream. Funding and guiding projects that build on top of established DeFi ecosystems.

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Post cover image
Blog iconUDHC
Sep 25
Exploring a Test for Decentralized Protocols - Brief
Rationale for a Testing FrameworkUsers of decentralized protocols, such as blockchains and blockchain-based protocols, put a lot of faith in the code that they’re interacting with – the constant worry of “Am I going to get hacked?” – but just under the surface is the importance of decentralization in a protocol, and with it, the ability to remain self-sovereign when using it. Plenty of brainpower and Twitter threads have dedicated hours defining decentralization's dynamic nature. Still, ...
Post cover image
Blog iconUDHC
Apr 21
From Chokepoint to Checkpoint
Much of the recent news around Chokepoint 2.0 has led to a flurry of takes around the stifling of innovation and the creation of analogies to previous inflection points in US history, including the advent of the automobile, privatized space travel, and the internet itself. The general idea that the United States is giving a leg-up to competitors by trying to shut down crypto is not a new concept, we even wrote about it last year. What Financial Institutions Stand to Lose Without Embracing Thi...
Post cover image
Blog iconUDHC
Apr 20
Nayms
The transfer of risk in traditional financial markets is opaque, slow, and inefficient. This can be found across a variety of verticals, with one of the silent giants being insurance. By introducing blockchain technology, the transfer of risk immediately becomes transparent and more efficient. As it pertains to insurance, decentralized options utilizing blockchain exist, but in order for major providers to get involved, a marketplace that has the appropriate regulatory approvals is needed. Na...
Post cover image
Blog iconUDHC
Aug 15
Tornado Cash Should Not Die in Vain: An Alternative Approach to Regulating DeFi
The recent news around Tornado Cash caught some in the crypto world by surprise. The Office of Foreign Asset Controls (OFAC) added forty-five Ethereum addresses associated with Tornado Cash to its Specially Designated National (SDN) list. This move bars all US persons from transacting with any of those addresses, and, as a result, numerous companies or projects with technological exposure to or integrations with TC have moved to cut those connections. Further, private companies, like Github, ...
The Compliant Arc of Decentralization
Blog iconUDHC
Jul 5
The Decentralization Series: Part Four (Read parts One, Two and Three)Review DecentralizationDefining blockchain protocol decentralization is difficult, but its consequences are easy to identify and understand. The first post of this series concluded that a protocol is sufficiently decentralized if it permits self-sovereignty, which means that a person or entity could engage with the protocol directly and do so freely without any undue external influence or control. The second post stipulated...
The Greatest Advantage Handed to the US on a Plate - Stablecoins
Blog iconUDHC
Jun 20
***By Steven Becker, CEO of UDHC, former President and COO of the Maker Foundation, which helped build Dai, a crypto-collateralized stablecoin.Stablecoins reinforce the US dollar as the de facto world reserve currency. The entire world wants to use the US dollar, and the US is trying its hardest not to make that happen by holding it close to its chest like a precious heirloom instead of deploying it as an essential tool of liberation. The US dollar, like all currencies, is a one-dimensional t...
The Arc of Decentralization
Blog iconUDHC
May 23
The Decentralization Series: Part ThreeStart with Reverse EngineeringBeing optimally decentralized is about creating resiliency by sustaining a protocol in a state of sufficient decentralization. Protocols achieve this steady-state by initially iterating and balancing control, funding, and community development to eventually emerge with a decentralized workforce and governance framework. Both of which work towards sustaining the objective of the protocol. But how do you get there? What are th...
Post cover image
Blog iconUDHC
May 12
Oasis Pro
As institutional interest in the cryptocurrency industry grows, it’s critical that bridges exist to onboard them in a safe, compliant manner. Stablecoins are becoming more mainstream; Mastercard and VISA are accepting USDC as payment and JPMorgan’s JPM Coin for its global payments network. The emergence of Central Bank Digital Currencies (CBDCs) is a sign that the major economic powers recognize the utility of digital currency. Oasis Pro Markets (“OPM”) is the first Alternative Trading System...
On Optimal Decentralization
Blog iconUDHC
Apr 13
The Decentralization Series: Part TwoRecall the Starting PointPreviously, our post - “On Being Sufficiently Decentralized” - stated that technological decentralization and self-sovereignty are the ingredients for a protocol or application being sufficiently decentralized. But, it is not a natural steady-state; it has to be maintained. Reaching the state of sufficient decentralization is one thing, but maintaining it requires much work. Creating the right environment and framework to sustain t...
On Being Sufficiently Decentralized
Blog iconUDHC
Mar 24
The Decentralization Series: Part OneWhy Decentralization is ImportantDecentralization is intuitively easy to understand but difficult to define precisely. Creating a blockchain-specific working definition helps attribute value to protocols and applications. Taken a step further, it can help identify the regulatory touchpoints for consumers and investors. Decentralization describes an intention and level of control. For example, a system intended to be centralized could distribute power and b...
Introduction to Price Discovery in DeFi
Blog iconUDHC
Feb 16
The Value in Gathering a CrowdTrading venues first and foremost represent a gathering of people. For example, Amsterdam’s “First Regular Trading Market,” a gathering that started on a street named Warmmoesstraat in the fifteenth century, led to the first stock exchange - The Amsterdam Stock Exchange. In the late eighteenth century, a gathering under a Buttonwood tree in New York led to the most iconic contemporary stock exchange, The New York Stock Exchange. The objective of the gatherings wa...
Cover image
Blog iconUDHC
Nov 13

Valuing Governance Tokens

TLDR:Governance tokens are critical assets to manage protocols, but currently get their value from second-order effectsThe delegation framework is a first step, but just a stopgap to a larger problem.Governance token holders should be rewarded for contributing, with payment coming directly from protocol revenue.What directly and inherently incentivizes someone to contribute to managing and steering an onchain protocol? The blunt, unfortunate answer, is nothing – incentives are generally intan...

Most popular by UDHC

On Optimal Decentralization

On Being Sufficiently Decentralized

The Arc of Decentralization

The Greatest Advantage Handed to the US on a Plate - Stablecoins

The Compliant Arc of Decentralization

Cover image

Tornado Cash Should Not Die in Vain: An Alternative Approach to Regulating DeFi

  • Previous
  • 1
  • 2
  • Next

UDHC

Written by
UDHC

An initiative to bring DeFi to the mainstream. Funding and guiding projects that build on top of established DeFi ecosystems.

Subscribe

2025 Paragraph Technologies Inc

PopularTrendingPrivacyTermsHome
Search...Ctrl+K

UDHC

Subscribe
Post cover image
Blog iconUDHC
Sep 25
Exploring a Test for Decentralized Protocols – In-Depth
AbstractThis exploration aims to provide a comprehensive definition and framework for identifying decentralized protocols within the context of distributed ledger technology. It outlines key attributes that decentralized protocols must possess, including fault tolerance, resilience, attack resistance, transparency, and collusion resistance. These attributes form the backbone of Web3, the internet of value, and are essential for ensuring operational integrity and user self-sovereignty. A decen...
Post cover image
Blog iconUDHC
Sep 25
Exploring a Test for Decentralized Protocols - Brief
Rationale for a Testing FrameworkUsers of decentralized protocols, such as blockchains and blockchain-based protocols, put a lot of faith in the code that they’re interacting with – the constant worry of “Am I going to get hacked?” – but just under the surface is the importance of decentralization in a protocol, and with it, the ability to remain self-sovereign when using it. Plenty of brainpower and Twitter threads have dedicated hours defining decentralization's dynamic nature. Still, ...
Post cover image
Blog iconUDHC
Apr 21
From Chokepoint to Checkpoint
Much of the recent news around Chokepoint 2.0 has led to a flurry of takes around the stifling of innovation and the creation of analogies to previous inflection points in US history, including the advent of the automobile, privatized space travel, and the internet itself. The general idea that the United States is giving a leg-up to competitors by trying to shut down crypto is not a new concept, we even wrote about it last year. What Financial Institutions Stand to Lose Without Embracing Thi...
Post cover image
Blog iconUDHC
Apr 20
Nayms
The transfer of risk in traditional financial markets is opaque, slow, and inefficient. This can be found across a variety of verticals, with one of the silent giants being insurance. By introducing blockchain technology, the transfer of risk immediately becomes transparent and more efficient. As it pertains to insurance, decentralized options utilizing blockchain exist, but in order for major providers to get involved, a marketplace that has the appropriate regulatory approvals is needed. Na...
Post cover image
Blog iconUDHC
Aug 15
Tornado Cash Should Not Die in Vain: An Alternative Approach to Regulating DeFi
The recent news around Tornado Cash caught some in the crypto world by surprise. The Office of Foreign Asset Controls (OFAC) added forty-five Ethereum addresses associated with Tornado Cash to its Specially Designated National (SDN) list. This move bars all US persons from transacting with any of those addresses, and, as a result, numerous companies or projects with technological exposure to or integrations with TC have moved to cut those connections. Further, private companies, like Github, ...
The Compliant Arc of Decentralization
Blog iconUDHC
Jul 5
The Decentralization Series: Part Four (Read parts One, Two and Three)Review DecentralizationDefining blockchain protocol decentralization is difficult, but its consequences are easy to identify and understand. The first post of this series concluded that a protocol is sufficiently decentralized if it permits self-sovereignty, which means that a person or entity could engage with the protocol directly and do so freely without any undue external influence or control. The second post stipulated...
The Greatest Advantage Handed to the US on a Plate - Stablecoins
Blog iconUDHC
Jun 20
***By Steven Becker, CEO of UDHC, former President and COO of the Maker Foundation, which helped build Dai, a crypto-collateralized stablecoin.Stablecoins reinforce the US dollar as the de facto world reserve currency. The entire world wants to use the US dollar, and the US is trying its hardest not to make that happen by holding it close to its chest like a precious heirloom instead of deploying it as an essential tool of liberation. The US dollar, like all currencies, is a one-dimensional t...
The Arc of Decentralization
Blog iconUDHC
May 23
The Decentralization Series: Part ThreeStart with Reverse EngineeringBeing optimally decentralized is about creating resiliency by sustaining a protocol in a state of sufficient decentralization. Protocols achieve this steady-state by initially iterating and balancing control, funding, and community development to eventually emerge with a decentralized workforce and governance framework. Both of which work towards sustaining the objective of the protocol. But how do you get there? What are th...
Post cover image
Blog iconUDHC
May 12
Oasis Pro
As institutional interest in the cryptocurrency industry grows, it’s critical that bridges exist to onboard them in a safe, compliant manner. Stablecoins are becoming more mainstream; Mastercard and VISA are accepting USDC as payment and JPMorgan’s JPM Coin for its global payments network. The emergence of Central Bank Digital Currencies (CBDCs) is a sign that the major economic powers recognize the utility of digital currency. Oasis Pro Markets (“OPM”) is the first Alternative Trading System...
On Optimal Decentralization
Blog iconUDHC
Apr 13
The Decentralization Series: Part TwoRecall the Starting PointPreviously, our post - “On Being Sufficiently Decentralized” - stated that technological decentralization and self-sovereignty are the ingredients for a protocol or application being sufficiently decentralized. But, it is not a natural steady-state; it has to be maintained. Reaching the state of sufficient decentralization is one thing, but maintaining it requires much work. Creating the right environment and framework to sustain t...
On Being Sufficiently Decentralized
Blog iconUDHC
Mar 24
The Decentralization Series: Part OneWhy Decentralization is ImportantDecentralization is intuitively easy to understand but difficult to define precisely. Creating a blockchain-specific working definition helps attribute value to protocols and applications. Taken a step further, it can help identify the regulatory touchpoints for consumers and investors. Decentralization describes an intention and level of control. For example, a system intended to be centralized could distribute power and b...
Introduction to Price Discovery in DeFi
Blog iconUDHC
Feb 16
The Value in Gathering a CrowdTrading venues first and foremost represent a gathering of people. For example, Amsterdam’s “First Regular Trading Market,” a gathering that started on a street named Warmmoesstraat in the fifteenth century, led to the first stock exchange - The Amsterdam Stock Exchange. In the late eighteenth century, a gathering under a Buttonwood tree in New York led to the most iconic contemporary stock exchange, The New York Stock Exchange. The objective of the gatherings wa...