Do Kwon's previous algo stable experiment, Basis Cash $BAC, failed bc its stability mechanism relied on speculators believing in a peg restoration exactly when faith was tested. Same same but different from the Terra $UST crash - a case study https://t.co/4YBEebKtMO

Even fully-collateralized fiat stablecoins have depegged. Even some of the weak algo stablecoins have recovered. Some thoughts. 🧵👇

Just a reminder that there's no such thing as failure when experimenting As long as we learn and move forward It's worth trying when you consider how big the potential impact will be if we can get it right Just try not to get burned along the way

In light of the ongoing $UST and $LUNA fiasco: Refresher on stablecoins, why they matter, and the different types I'll be doing a series of case studies on how algo stables have failed (or weaknesses) from a mechanism and token design perspective https://t.co/h4k7Pamycf

A solution concept for #KYC without knowing your customer, leveraging self-sovereign identity and zero-knowledge proofs - Good Read! 👀 👉 https://t.co/RLHpasbk3B This approach breaks the traditional privacy vs. transparency trade-off and provides structured transparency 🤯

The way governance tokens work today isn’t sustainable 1) Governance power should be earned, not bought 2) Contributors shouldn’t have to give up governance rights (tokens) to pay rent

We all know L2 tokens are coming and they will 🚀 But there’s been little info about what L2 tokenomics will look like, and wen token? I launched one of the first L2 tokens and reviewed every existing one: here’s what I think #L222 @StarkwareLtd @zkSync @OptimismPBC @arbitrum

It’s true that web3 benefits VCs. But also know that it can benefit retail just as much thru DAOs like @Globalcoinrsrch that aims to disrupt the traditional VC model, democratize crypto investing and provide access to those that never had such access

Specific initiatives and BUFF strategies that GCR plans to use to incentivize community generated liquidity will be revealed in Part 3... Stay tuned and follow @Globalcoinrsrch @scribeDAO @CyberHang @linge92 for more insights.

DAOs are uniquely advantaged to use Option 2 because they can provide creative incentives like additional rights and benefits within their ecosystems (BUFFs).

🥕Option 2 encourages additional participation and is less likely to attract mercenaries. Ex: stores issuing coupons for purchasing goods (encourages additional purchases and has no value unless used) and CEXs like Binance/FTX providing discounts on transactions for staking.

💰Option 1 is how DeFi protocols traditionally bootstrap liquidity. But as we've seen, this method attracts mercenary capital, unstable liquidity, and ultimately a price collapse if the incentivization program doesn't build enough liquidity to reach escape velocity

Two high level options for incentivization: 💰Option 1: Reward liquidity providers with additional tokens 🥕Option 2: Reward liquidity providers with optionality

To counter this, the DAO should provide incentives for existing members/holders of the token to provide liquidity to the secondary market.

Without sufficient liquidity, token prices can be extremely volatile🎢 which: 1) discourages new members from joining if the price skyrockets simply due to illiquidity 😑 2) discourages holding when the price subsequently tanks due to depleted member growth 💀

In Pt 1 we concluded that token-gated DAOs need to minimize price volatility to build trust This stabilizes the value-accretive loop that the token facilitates and prevents the ecosystem from tipping into a negative feedback loop that can be a DAO killer https://t.co/tjPx2FuuJi

How can DAOs incentivize members to provide liquidity for new buyers without attracting mercenaries? @CyberHang's BUFF primitive offers a sustainable solution. Summary of What Does DAO 2.0 Tokenomics Look Like? (Pt 2) by @Globalcoinrsrch for @scribeDAO https://t.co/pj2V6MYSld

status rewards, especially as NFTs, remove the need to rely exclusively on token-based reward systems in communities. how? - social rewards act as intrinsic and extrinsic motivators - quests + rewards gamify contributions/work - status rewards leads to positive-sum games

Drop you ENS name, follow us, and add (🐶,🐶) to your bio. This could be serious.

Strategies for incentivizing organic liquidity provided by community members are explored in Part 2... Stay tuned and follow @Globalcoinrsrch @scribeDAO @CyberHang @linge92 for more insights.