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Encrypting Legacy Business: Hybrid Innovation Becomes Web3’s Main Narrative
At its core, using Web3 infrastructure to host the time-tested business logic of Web2 models is the same playbook behind some Web3 projects that “back-door list” and the recent wave of U.S. public companies stockpiling crypto assets. Take a look at the projects now favored by primary-market investors and you’ll notice a common thread: they all lean toward hybrid innovation, plugging proven Web2 business logic into Web3 rails. • Lightyear ports the logic of traditional equity ETFs on-chain. • ...
PrismaX: The $11M Super Project Surging in Popularity with Unlimited Potential!
Project IntroductionPrismaX is an innovative blockchain project dedicated to delivering efficient and transparent decentralized services. Leveraging smart contracts and cross-chain interoperability, it supports diverse digital asset management and financial applications while optimizing transaction efficiency and scalability. Built with a modular architecture, PrismaX prioritizes security and user experience. Its native token, PMX, powers community governance and ecosystem incentives, driving...
A Comprehensive Analysis of Dubai’s RWA Regulation: From Licensing to Sandbox Implementation
Amidst the global trend of regulating virtual assets, Dubai has emerged as a crucial hub for Real-World Assets (RWA) due to its forward-looking strategies. This article delves deeply into Dubai’s RWA regulatory framework, covering the regulatory frameworks of VARA and DFSA, types of licenses and business scopes, the approval process for ARVA issuance, requirements for reserve assets, disclosure details, and DFSA’s newly launched tokenization regulatory sandbox program. It provides a comprehen...
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REV vs. F/R Multiplier: A Novel Valuation Framework for Public Blockchains
Support Influencers
REV vs. F/R Multiplier: A Novel Valuation Framework for Public Blockchains
Encrypting Legacy Business: Hybrid Innovation Becomes Web3’s Main Narrative
At its core, using Web3 infrastructure to host the time-tested business logic of Web2 models is the same playbook behind some Web3 projects that “back-door list” and the recent wave of U.S. public companies stockpiling crypto assets. Take a look at the projects now favored by primary-market investors and you’ll notice a common thread: they all lean toward hybrid innovation, plugging proven Web2 business logic into Web3 rails. • Lightyear ports the logic of traditional equity ETFs on-chain. • ...
PrismaX: The $11M Super Project Surging in Popularity with Unlimited Potential!
Project IntroductionPrismaX is an innovative blockchain project dedicated to delivering efficient and transparent decentralized services. Leveraging smart contracts and cross-chain interoperability, it supports diverse digital asset management and financial applications while optimizing transaction efficiency and scalability. Built with a modular architecture, PrismaX prioritizes security and user experience. Its native token, PMX, powers community governance and ecosystem incentives, driving...
A Comprehensive Analysis of Dubai’s RWA Regulation: From Licensing to Sandbox Implementation
Amidst the global trend of regulating virtual assets, Dubai has emerged as a crucial hub for Real-World Assets (RWA) due to its forward-looking strategies. This article delves deeply into Dubai’s RWA regulatory framework, covering the regulatory frameworks of VARA and DFSA, types of licenses and business scopes, the approval process for ARVA issuance, requirements for reserve assets, disclosure details, and DFSA’s newly launched tokenization regulatory sandbox program. It provides a comprehen...
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This article systematically explores the definition, calculation, pros/cons of REV (Real Economic Value), its relationship with models like FDV/REV and MEV, and combines on-chain data with market trends to help readers build a nuanced, (dialectical) valuation framework—avoiding misjudgments from over-relying on (single metrics).
This piece aims to foster learning and critical thinking about REV, enabling a more holistic evaluation of public blockchains. We advocate (inclusive) learning, (dialectical analysis) of ongoing debates, and avoiding isolated reliance on any metric to prevent potential pitfalls.
Articles:
Dashboards:
REV (Real Economic Value) measures the total fees users pay to interact with a blockchain, akin to revenue for traditional businesses.
"REV includes in-protocol transaction fees + out-of-protocol tips (e.g., MEV), reflecting aggregate monetary demand for on-chain transactions." —@blockworksres
Formula (clarified):
REV = ∑(In-protocol fees) + ∑(Out-of-protocol tips) + ∑(MEV)
Note: The "/" in some formulas denotes addition, not division.
REV Maxis: Argue maximizing REV reduces marginal costs, expands user bases, and ensures sustainable revenue (e.g., Dan Smith).
REV Minimalists: Claim REV is a poor long-term metric—it spikes during speculative bubbles and fails for chains like Bitcoin (near-zero REV). Advocates propose minimal viable REV to limit economic risks (e.g., Ryan Berckmans).
This article focuses on REV’s application, not ideological debates.
2019–2023: Ethereum dominated REV share.
2024: Solana (SOL) took the lead, with Tron (TRX) also gaining ground.
Key Insight: REV heavily weights non-user income (e.g., MEV). Solana’s MEV boosts its REV, enhancing valuation potential.
DeepSeek’s Analysis:
Metric | Driver | Valuation Impact |
|---|---|---|
REV | User + MEV fees | Revenue sustainability |
F/R Multiplier | FDV ÷ REV | Market premium/泡沫 (bubble) |
Pros:
Harder to manipulate (vs. active addresses/trading volume), especially when fees are burned.
Tracks retail activity across chains historically.
Cons:
Lagging indicator.
Doesn’t reflect a chain’s full picture—never use in isolation.
Possible manipulation (though difficult).
MEV-heavy chains may distort REV (e.g., immature MEV infra → unfairly low REV).
By dividing FDV (Fully Diluted Valuation) by annualized REV, we get an F/R Multiplier—similar to a P/E ratio for blockchains:
High F/R: Market optimism/speculation (e.g., Bitcoin’s narrative/liquidity premium).
Low F/R: Strong revenue alignment (e.g., SOL, TRX).
Alternative: M/R Multiplier (Market Cap ÷ REV) avoids FDV’s dilution bias, better for short-term pricing efficiency.
DeepSeek’s Comparison of Valuation Models:
Metric | Core Formula | Strengths | Limitations | Use Case |
|---|---|---|---|---|
PE | Market Cap ÷ Earnings | Profitability focus | Ignores growth; fails if unprofitable | Mature industries |
PS | Market Cap ÷ Revenue | Works for loss-making firms | Blind to costs | Tech startups/SaaS |
FR | FDV ÷ Annualized REV | Captures long-term narrative | FDV inflation (unlocked tokens) | Bitcoin/Ethereum valuation |
MR | Market Cap ÷ REV | Short-term pricing realism | Ignores unlock pressure | Solana/short-term trading |
MEV (Maximal Extractable Value): Profits from链上套利 (on-chain arbitrage),清算 (liquidations),抢跑 (front-running).
Key Differences:
MEV: Micro-level health indicator (e.g., validator income, user experience).
REV: Macro-level revenue premium (total).
Health Metric: MEV/REV Ratio → Lower = healthier (high ratios signal risks like centralization).
REV ≠ Value Capture: REV is often burned or redistributed (e.g., via deflationary mechanisms).
F/R Varies by Chain: Like P/E ratios, differences reflect yield expectations/REV quality.
Blockchains ≠ Companies: Native tokens aren’t equity—valuation requires unique frameworks.
REV Minimalism? Unlikely optimal; maximizing REV warrants debate (Dan Smith).
Holistic Metrics: Combine REV with fees, F/R, MEV, etc., for balanced analysis.
Final Note:
Blockchain valuation demands (dialectical thinking)—no single metric suffices. REV, MEV, and multipliers are tools, not gospel.
This article systematically explores the definition, calculation, pros/cons of REV (Real Economic Value), its relationship with models like FDV/REV and MEV, and combines on-chain data with market trends to help readers build a nuanced, (dialectical) valuation framework—avoiding misjudgments from over-relying on (single metrics).
This piece aims to foster learning and critical thinking about REV, enabling a more holistic evaluation of public blockchains. We advocate (inclusive) learning, (dialectical analysis) of ongoing debates, and avoiding isolated reliance on any metric to prevent potential pitfalls.
Articles:
Dashboards:
REV (Real Economic Value) measures the total fees users pay to interact with a blockchain, akin to revenue for traditional businesses.
"REV includes in-protocol transaction fees + out-of-protocol tips (e.g., MEV), reflecting aggregate monetary demand for on-chain transactions." —@blockworksres
Formula (clarified):
REV = ∑(In-protocol fees) + ∑(Out-of-protocol tips) + ∑(MEV)
Note: The "/" in some formulas denotes addition, not division.
REV Maxis: Argue maximizing REV reduces marginal costs, expands user bases, and ensures sustainable revenue (e.g., Dan Smith).
REV Minimalists: Claim REV is a poor long-term metric—it spikes during speculative bubbles and fails for chains like Bitcoin (near-zero REV). Advocates propose minimal viable REV to limit economic risks (e.g., Ryan Berckmans).
This article focuses on REV’s application, not ideological debates.
2019–2023: Ethereum dominated REV share.
2024: Solana (SOL) took the lead, with Tron (TRX) also gaining ground.
Key Insight: REV heavily weights non-user income (e.g., MEV). Solana’s MEV boosts its REV, enhancing valuation potential.
DeepSeek’s Analysis:
Metric | Driver | Valuation Impact |
|---|---|---|
REV | User + MEV fees | Revenue sustainability |
F/R Multiplier | FDV ÷ REV | Market premium/泡沫 (bubble) |
Pros:
Harder to manipulate (vs. active addresses/trading volume), especially when fees are burned.
Tracks retail activity across chains historically.
Cons:
Lagging indicator.
Doesn’t reflect a chain’s full picture—never use in isolation.
Possible manipulation (though difficult).
MEV-heavy chains may distort REV (e.g., immature MEV infra → unfairly low REV).
By dividing FDV (Fully Diluted Valuation) by annualized REV, we get an F/R Multiplier—similar to a P/E ratio for blockchains:
High F/R: Market optimism/speculation (e.g., Bitcoin’s narrative/liquidity premium).
Low F/R: Strong revenue alignment (e.g., SOL, TRX).
Alternative: M/R Multiplier (Market Cap ÷ REV) avoids FDV’s dilution bias, better for short-term pricing efficiency.
DeepSeek’s Comparison of Valuation Models:
Metric | Core Formula | Strengths | Limitations | Use Case |
|---|---|---|---|---|
PE | Market Cap ÷ Earnings | Profitability focus | Ignores growth; fails if unprofitable | Mature industries |
PS | Market Cap ÷ Revenue | Works for loss-making firms | Blind to costs | Tech startups/SaaS |
FR | FDV ÷ Annualized REV | Captures long-term narrative | FDV inflation (unlocked tokens) | Bitcoin/Ethereum valuation |
MR | Market Cap ÷ REV | Short-term pricing realism | Ignores unlock pressure | Solana/short-term trading |
MEV (Maximal Extractable Value): Profits from链上套利 (on-chain arbitrage),清算 (liquidations),抢跑 (front-running).
Key Differences:
MEV: Micro-level health indicator (e.g., validator income, user experience).
REV: Macro-level revenue premium (total).
Health Metric: MEV/REV Ratio → Lower = healthier (high ratios signal risks like centralization).
REV ≠ Value Capture: REV is often burned or redistributed (e.g., via deflationary mechanisms).
F/R Varies by Chain: Like P/E ratios, differences reflect yield expectations/REV quality.
Blockchains ≠ Companies: Native tokens aren’t equity—valuation requires unique frameworks.
REV Minimalism? Unlikely optimal; maximizing REV warrants debate (Dan Smith).
Holistic Metrics: Combine REV with fees, F/R, MEV, etc., for balanced analysis.
Final Note:
Blockchain valuation demands (dialectical thinking)—no single metric suffices. REV, MEV, and multipliers are tools, not gospel.
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