Bankless Ethereum’s Biggest Mistake (and How to Fix It) | Sam Kazemian
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Apr 28, 2025 Sam Kazemian, co-founder of Frax Protocol, dives into Ethereum's identity crisis. He argues that Ethereum has confused ETH as an asset with the technology itself, undermining its role as a store of value. The conversation examines the post-EIP-1559 and proof-of-stake landscape, discussing how these changes affected ETH's valuation. Kazemian emphasizes the importance of social consensus in shaping Ethereum's future narrative and urges the community to redefine its identity for better market perception.
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ETH Asset Shifted To DCF Model
- Value assets by two main types: discounted cash flow (DCF) and commodity-like assets without cash flow claims. ETH shifted from a commodity-like store of value toward a DCF model unintentionally.
EIP-1559 Changed ETH Asset Definition
- EIP-1559 shifted ETH asset perception from a commodity store of value toward focusing on its discounted cash flow from fees. This change limits ETH's potential to be valued as a true commodity-like store of value.
Discounted Cash Flow Anchor Limits ETH Value
- Focusing on the discounted cash flow floor anchors ETH's price low and impedes appreciation. Consensus around this low floor price causes ETH to trade near minimal valuations.