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Seek Economically Exothermic Areas for Capital Allocation
Capital allocation in the blockchain space is shifting towards mechanisms like sharing and rewarding users and projects that drive growth in the ecosystem. This approach focuses on reinvesting capital back into the ecosystem to fuel further growth. The concept of economically exothermic areas, where tokens and money are continuously generated and distributed, is gaining traction. This model is seen as more sustainable than relying solely on governance tokens, leading to excitement around restaking protocols and native yield generation. The key takeaway is to look for areas with economically exothermic sources of yield for interesting capital allocation opportunities.