Found on Placeholder Blog, thoughts?:
The model describes a three-sided market between miners (the supply side), users (the demand side), and investors (the capital side). Miners opt-in to the consensus protocol and coordinate their resources to provide the network’s service in a decentralized manner, users consume the service, and investors facilitate exchange while capitalizing the network.
Bitcoin, for example, uses transaction fees and inflation to generate income for its miners. MakerDAO charges Dai users a stability fee which goes to buy-back and burn MKR, rewarding holders with increased ownership for assuming the system’s risk. Meanwhile FOAM cartographers, in a TCR model, can earn tokens for curating points on the map.
FOAM investors look to a future where the world deems it as important to be present on its map as it is to be on Google Maps, driving demand for its token (without getting into FOAM’s proof-of-location service).
If you’ve been in crypto for a bit, none of these ideas may strike you as new. But looking at networks this way has led me to a few interesting ideas I’m cataloguing under the term crypto-capitalism, which I’ll expand upon in future posts. For example, it helped me see cryptonetworks as systems for exchanging labor for capital (vs. currency), the fundamental concepts of network capital , and what the different roles are for investors like us in the development of these new economies. The circle will serve as a baseline for these explorations.