SUPERNOVA is coming. Fast. 🔥 Taking MvX back to the frontier. Can economics be the growth catalyst for the MvX ecosystem, today? I think so, let's briefly explore why and how. Simplified problem statement thread 🧵
1/ First, Preface and Problem Statement. Stagnation is our biggest enemy. Shrinking from the great challenge. Wasting life with half-measures.
2/ So, what is the concrete background and context today? What do we need, and why?
3/ What is the rationale? What is the comparative market overview? How can we arm ourselves to compete and win? What sectors can we attack today, to ground the frontier technology we have built, into the most tangible, actionable, and value generating use cases?
4/ Great! We understand the enemy. We have the background, and the rationale. What are some very concrete objectives we can unlock immediately, to seize market timing and momentum? Grounded in the below objectives, MultiversX EGLD can unlock a 10x-100x premium.
5/ So, what are the concrete steps to achieve this? --- *First, a mental note for the reader. Everything I have read thus far as a critique to the economics model falls short because of a very simple and elementary misunderstanding of the chicken and egg economic paradox. Everyone wants the egg (i.e. liquidity, revenue, demand), but somehow lives with the unfounded make-belief that the egg "just appears" out of nowhere in front of them. Without any real regard whatsoever for how the chicken hatches that particular egg. So, here is a simple first principle to illuminate the matter: emissions/incentives are the chicken, that the network pays to generate the egg: attract liquidity, generate revenue, bootstrap demand. These are the most effective means of achieving one key thing: locking more supply/flow out of circulation. Supply shock, price inelasticity, demand shock. This is crypto economics 101. Understanding these simple matters, give you, the reader, a first glimpse at the possible solution for the growth maze. --- Coming back, we have two buckets of tools, each focused solely on generating new demand, new revenue, and new buyback mechanisms. (a) Internal mechanisms.
6/ (b) External mechanisms.
7/ Now, what are the possible outcomes? Perhaps the most important thing to understand, is that everything we are putting in place with the new economics, is a seed for different, targeted, and compounding liquidity flows. What is the outcome of these liquidity flows coming to MultiversX and EGLD? Let me make it very simple: 1. Competitive staking, brings and locks in new capital to secure the network. Takes more EGLD supply out of the market, and locks it in one token sink. 2. Revenue generating builders, uses EGLD on the network, and locks more of it in a new token sink. 3. DATS leverage capital markets, to acquire increasingly significant positions in network assets, effectively creating a new and very competitive token sink. 4. ETFs leverage a different and complementary institutional pool of capital, to share exposure to the network asset, creating different and complementary token sinks. If executed well, all the above, results in a few clear and concrete outcomes. 1. Immediate and significant liquidity tailwind for EGLD 2. Significant US tailwind for EGLD 3. Multiple material buyback flywheels and token sinks
8/ Market context. Sometimes, timing is everything. We do not live in a vacuum. Macro timing, regulatory and market structures are vital. Understanding them, and leveraging them, is where the edge lies.
We have an open window. Action is what determines our outcome.
Together, we have the tools to kickstart vigorous growth, and plug this breakthrough technology in the biggest capital pool of the world. These next few days, we'll explore each of the tangible, actionable and high impact solutions. This is the time to thoughtfully process and act. Forward.
ps. This is the problem statement overview. I will share a separate thread, breaking down the actual technical solution, and how it strands to revive the growth flywheel of EGLD.
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