The first-mover advantage cannot always be fully capitalized. Various factors explain the challenges faced by the project that introduced the concept of DeFi and was, for a long time, the undisputed leader in this category. The protocol has not only been recognized as one of the most significant financial innovations in DeFi but also as a spearhead in the rise of DAOs.DAI Supply historyIn 2022, with 10 billion, everything pointed to exponential growth for the project, but that was its peak ca...

The first-mover advantage cannot always be fully capitalized. Various factors explain the challenges faced by the project that introduced the concept of DeFi and was, for a long time, the undisputed leader in this category. The protocol has not only been recognized as one of the most significant financial innovations in DeFi but also as a spearhead in the rise of DAOs.DAI Supply historyIn 2022, with 10 billion, everything pointed to exponential growth for the project, but that was its peak ca...

One of the most significant debates for the Ethereum community is token issuance. The token issuance policy hasn't had as structured a design as the technology strategy, and I believe this can be seen in this chart that shows its evolution up until 2022.Ethereum Issuance HistoryI think it's fair to acknowledge that despite all these changes, there has been one constant in the issuance policy: a gradual reduction, leading to a point where we've even seen negative inflation for a...

One of the most significant debates for the Ethereum community is token issuance. The token issuance policy hasn't had as structured a design as the technology strategy, and I believe this can be seen in this chart that shows its evolution up until 2022.Ethereum Issuance HistoryI think it's fair to acknowledge that despite all these changes, there has been one constant in the issuance policy: a gradual reduction, leading to a point where we've even seen negative inflation for a...

The main value proposition of a Public Blockchain is its blockspace, a resource whose price is determined by market supply and demand. This demand experiences occasional spikes that we can observe at certain times on the network, and an average price that used to fluctuate within ranges that gradually shifted depending on the market conditions. The significant demand for Ethereum's space has allowed this protocol to lead the revenue of the entire crypto ecosystem, generating over $10 bil...

The main value proposition of a Public Blockchain is its blockspace, a resource whose price is determined by market supply and demand. This demand experiences occasional spikes that we can observe at certain times on the network, and an average price that used to fluctuate within ranges that gradually shifted depending on the market conditions. The significant demand for Ethereum's space has allowed this protocol to lead the revenue of the entire crypto ecosystem, generating over $10 bil...

Currently, Moxie’s total market capitalization is $19 million, which, although typically considered a small-cap project in the crypto world, is a significant valuation in the real world. In the real world, this would imply the entry valuation of the latest investor in the project, and the shares would not be liquid. Tokens in the crypto world introduce us to a new situation where we have startups trading from day one, often with vesting commitments on a much more aggressive timeline. This exp...

Currently, Moxie’s total market capitalization is $19 million, which, although typically considered a small-cap project in the crypto world, is a significant valuation in the real world. In the real world, this would imply the entry valuation of the latest investor in the project, and the shares would not be liquid. Tokens in the crypto world introduce us to a new situation where we have startups trading from day one, often with vesting commitments on a much more aggressive timeline. This exp...

What is the role of investors in Crypto? Before starting a valuation of the SKY token, I think it’s necessary to reflect on the role investors play in the Crypto ecosystem. The reality of the financial markets is that the ownership of the world’s leading companies is highly concentrated. The value creation in these companies is often distributed very unequally. Typically, the great fortunes we see in the world are often associated with the founders of large companies who have capitalized on m...

What is the role of investors in Crypto? Before starting a valuation of the SKY token, I think it’s necessary to reflect on the role investors play in the Crypto ecosystem. The reality of the financial markets is that the ownership of the world’s leading companies is highly concentrated. The value creation in these companies is often distributed very unequally. Typically, the great fortunes we see in the world are often associated with the founders of large companies who have capitalized on m...

One of the ongoing challenges Ethereum has faced is how to bring Bitcoin onto its network in a decentralized manner. Due to the characteristics of the Bitcoin network, there isn’t a fully decentralized solution yet, although the new DeFi movement on the Bitcoin network might bring that possibility closer. These are technical solutions that Ethereum could eventually adopt, but they are still a long way off. Until now, WBTC has been the most widely used implementation of Bitcoin on Ethereum, th...

One of the ongoing challenges Ethereum has faced is how to bring Bitcoin onto its network in a decentralized manner. Due to the characteristics of the Bitcoin network, there isn’t a fully decentralized solution yet, although the new DeFi movement on the Bitcoin network might bring that possibility closer. These are technical solutions that Ethereum could eventually adopt, but they are still a long way off. Until now, WBTC has been the most widely used implementation of Bitcoin on Ethereum, th...

It's a really important topic when we try to evaluate an L1 because they are the main source of revenue to sustain the network. However, it's difficult to justify their valuations based on the current data we have, and other revenue sources like MEV or considering the main asset as a monetary asset are emerging, which significantly diminish their importance, making it almost marginal.L1 FeesEthereum reached $9 billion in revenue in 2021, while in 2024 it seems likely that it will st...

It's a really important topic when we try to evaluate an L1 because they are the main source of revenue to sustain the network. However, it's difficult to justify their valuations based on the current data we have, and other revenue sources like MEV or considering the main asset as a monetary asset are emerging, which significantly diminish their importance, making it almost marginal.L1 FeesEthereum reached $9 billion in revenue in 2021, while in 2024 it seems likely that it will st...

Let's analyze the different incentive mechanisms proposed by Moxie. This question is being posed openly by the project to gauge the community's sentiment. Ultimately, these mechanisms need to be well-designed not only from a financial perspective but also from a social one. As a starting point, let's introduce several concepts that we will use throughout this article Farscore We're talking about an indicator that measures your social reputation. Ideally, this indicator sho...

Let's analyze the different incentive mechanisms proposed by Moxie. This question is being posed openly by the project to gauge the community's sentiment. Ultimately, these mechanisms need to be well-designed not only from a financial perspective but also from a social one. As a starting point, let's introduce several concepts that we will use throughout this article Farscore We're talking about an indicator that measures your social reputation. Ideally, this indicator sho...

While performing the exercise of valuing MKR tokens ahead of the SKY launch, one of the key questions to ask is what value the token captures from the launch of all these projects. What impact should we consider on the MKR token for having financed and created these startups? Spark is currently ranked 12th in DeFi, with a TVL of 2.5 billion. We can consider it as a Lending project that primarily has a protocol that provides capital to lend to third parties. This means that its business is ess...

While performing the exercise of valuing MKR tokens ahead of the SKY launch, one of the key questions to ask is what value the token captures from the launch of all these projects. What impact should we consider on the MKR token for having financed and created these startups? Spark is currently ranked 12th in DeFi, with a TVL of 2.5 billion. We can consider it as a Lending project that primarily has a protocol that provides capital to lend to third parties. This means that its business is ess...

In this article, I aim to model the value creation that SPARK brings to MakerDAO (SKY). In the previous article, we defined the various models that traditional finance uses when a company incubates ventures that eventually separate from the parent company. The model followed by SKY is very innovative and does not have a direct analogy in the traditional world (or at least I personally don't know of a similar case). We have defined this model as a Corporate spin-off with no retained equit...

In this article, I aim to model the value creation that SPARK brings to MakerDAO (SKY). In the previous article, we defined the various models that traditional finance uses when a company incubates ventures that eventually separate from the parent company. The model followed by SKY is very innovative and does not have a direct analogy in the traditional world (or at least I personally don't know of a similar case). We have defined this model as a Corporate spin-off with no retained equit...

The derivatives market is often described as a zero-sum game. In a zero-sum game, the gain of one participant is exactly balanced by the loss of another. This means that the total amount of wealth in the system remains constant; it is merely redistributed among the participants. In the context of derivatives, such as options or futures, when one party profits from a trade, another party must incur a corresponding loss. For example, if a trader buys a futures contract betting that the price of...

The derivatives market is often described as a zero-sum game. In a zero-sum game, the gain of one participant is exactly balanced by the loss of another. This means that the total amount of wealth in the system remains constant; it is merely redistributed among the participants. In the context of derivatives, such as options or futures, when one party profits from a trade, another party must incur a corresponding loss. For example, if a trader buys a futures contract betting that the price of...

We will attempt to conduct an initial analysis of the 600 million Token issuance that SKY has planned to carry out annually to remunerate USDS (DAI) depositors. The Token Reward rate will be 600 million NewGovToken per year distributed to participating NewStable holders This involves using an initial 2.67% increase in the project's total token supply, which will be primarily employed as a marketing budget with the aim of generating demand for USDs deposited in the DSR module. Assuming th...

We will attempt to conduct an initial analysis of the 600 million Token issuance that SKY has planned to carry out annually to remunerate USDS (DAI) depositors. The Token Reward rate will be 600 million NewGovToken per year distributed to participating NewStable holders This involves using an initial 2.67% increase in the project's total token supply, which will be primarily employed as a marketing budget with the aim of generating demand for USDs deposited in the DSR module. Assuming th...