But that's the thing with all L2s - activity spikes because people are farming in anticipation of airdrop (that's why "users" metric is misleading, one person/farmer on average has about 10 wallets) and then it dies down and better product wins. Let's be honest, most protocols don't need token but it's the only way for VCs to cash out.
Airdrops / gov tokens are just a meme meant to be dumped on the first candle. You know it, I know, everybody should know it. Don't marry your bags. Do you remember hype around HNY in Q4 2020? Look where it is now. That's how it ends.
Also, fragmented liquidity is just bad for the whole ecosystem.
I'd like to draw attention to the fact that it doesn't work. Sure, the legal aspect seems to be working since SEC hasn't gone after this type of structure. But that shouldn't be the justification. If we want these systems to last, we need to think about better token design first.. if we can showcase better design and it works, it will push legal precedents to follow suite.
Qui. Aide
But that's the thing with all L2s - activity spikes because people are farming in anticipation of airdrop (that's why "users" metric is misleading, one person/farmer on average has about 10 wallets) and then it dies down and better product wins. Let's be honest, most protocols don't need token but it's the only way for VCs to cash out.
Airdrops / gov tokens are just a meme meant to be dumped on the first candle. You know it, I know, everybody should know it. Don't marry your bags. Do you remember hype around HNY in Q4 2020? Look where it is now. That's how it ends.
Also, fragmented liquidity is just bad for the whole ecosystem.
I'd like to draw attention to the fact that it doesn't work. Sure, the legal aspect seems to be working since SEC hasn't gone after this type of structure. But that shouldn't be the justification. If we want these systems to last, we need to think about better token design first.. if we can showcase better design and it works, it will push legal precedents to follow suite.