The end-state for crypto tokens is protocol equity A digital asset that serves as a claim on the future positive cash flows of a blockchain-based protocol That’s it, this is how tokens accrue value, no ponzinomics or mental gymnastics required 1. Solve a real problem for a large addressable market 2. Monetize adoption as dominant market share is achieved 3. Accrue value to token via a dividend (staking reward) and/or a buy-back (token burn) Not every protocol will succeed and become cash flow positive, but those that do, present the largest opportunity for token investors This has largely not occurred to date due to the openly and aggressively hostile U.S. regulatory environment toward crypto Projects that fly too close to the sun risk putting themselves in the direct cross-hairs of government agencies looking to make an example of an industry they (falsely) perceive as a threat Hence, instead of protocol equity, we have “utility tokens” or “governance tokens” to mask what the ultimate end goal is This is obviously unsustainable, hence the extreme volatility as people don’t know how to price these assets, while raw speculation keeps the market alive Thankfully, we are starting to see a shift in attitude within the U.S., mainly from politicians who are taking note of who is writing the major checks this election cycle Once the regulatory environment clears up, however long that may take, we can finally enter the next stage of crypto’s evolution: Treating tokens for what they actually are, tools for fundraising and economic alignment Digital assets with mechanisms for value accrual that have been tried and true in capital markets for centuries The uncertainty in all of this is your alpha, good luck out there