

Finding Alpha & Being Contrarian | Tushar Jain | Co-Founder of Multicoin | EP #78
5 snips May 22, 2023
AI Snips
Chapters
Transcript
Episode notes
Three-Part Valuation For Layer Ones
- Layer-one tokens have three value components: commodity, capital-asset income, and money characteristics.
- MEV turns token staking into a capital-asset that generates predictable income for stakers.
MEV Is Unavoidable; Redirect It
- MEV cannot be eliminated without creating worse incentives or arms races like HFT latency races.
- Redistributing MEV to stakers via fees is a sustainable equilibrium that aligns incentives.
Moneyness Comes From Wide Ownership
- A token's 'moneyness' depends on how widely it is owned, not just on low inflation or burn mechanics.
- Mass ownership makes a layer-one token function more like money than simply a deflationary commodity.