Valuing Layer 1 Blockchains: Complexities and Challenges

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This chapter explores the multifaceted process of valuing Layer 1 blockchain protocols, comparing them to traditional finance and emerging market currencies. It discusses the implications of market behaviors and transaction fees, particularly focusing on Solana's model and the challenges of minimizing Miner Extractable Value (MEV). Additionally, the chapter highlights the importance of effective token design and strategic communication for companies in the DeFi space, emphasizing the industry's evolution and need for improved investment practices.

In this episode, Noah and Felipe from Theia joined us to discuss their perspective on liquid and private token markets, how they reconcile fundamentals and valuations, and their thoughts on malicious MEV. Additionally, we cover how they view activist investing in crypto. Finally, we dive into token design.

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Timestamps:

(0:00) Introduction

(2:50) Why Focus On Liquid Tokens?

(9:10) Token Only Teams vs Token & Equity Teams

(17:34) Permissionless III Ad

(18:48) Reconciling Fundamentals and Valuation

(26:48) Dealing With Malicious MEV

(33:06) Activist Investing In Crypto

(38:37) Token Design: Less Is More

(43:40) Looking Towards the Next Three Years

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Disclaimer: Nothing said on 0xResearch is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Boccaccio, Dan, and our guests may hold positions in the companies, funds, or projects discussed.