Debate: How to Value an L1 Token With Dan Smith and Jonah Weinstein

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Jun 2, 2025

Guest

Dan Smith

Guest

Jonah Weinstein

Jonah Weinstein, a crypto-focused Portfolio Manager at SkyCatcher, joins forces with Dan Smith, Lead Researcher at Blockworks, for a deep dive into valuing L1 tokens. They debate the merits of REV versus RSOV metrics, exploring how these frameworks redefine investment strategies. The duo highlights the unique characteristics of Layer 1 tokens, their potential as monetary instruments, and the dynamic interplay among stakeholders. With insights into user demand and market valuations, they provide a fresh perspective on the evolving crypto landscape.

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INSIGHT

L1 Tokens as Commodity Money

L1 tokens function as commodity monies, primarily used for paying transactions and staking for yields.
They don't act like equity assets with pro-rata cash flows, but as money with native yields in the token itself.

INSIGHT

Blockchains vs Companies and Value

L1 blockchains differ from companies with multiple independent stakeholders instead of a single legal entity.
The most valuable aspect is the store of value function, transporting wealth through time.

INSIGHT

Need for FX in Token Valuation

Pure equity-style DCF models for L1 tokens fail because staking yields pay in native tokens, not fiat.
Investors must model future FX rates to express token yields in dollar terms accurately.

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