2025-07-31 16:28 Tags:MoneyWeb3
https://www.notboring.co/p/own-the-internet
https://institutional.fidelity.com/app/proxy/content?literatureURL=/9919383.PDF
1. Core idea
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Treat each public blockchain like a sovereign, open-border digital economy.
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Its native currency (e.g., ETH for Ethereum) plays the same roles that fiat plays in a nation-state: unit of account, medium of exchange and potential store of value.
2. Asset taxonomy
| Layer | Purpose | Examples |
|---|---|---|
| Currency-grade assets | Native money that secures and pays for block-space | BTC, ETH, SOL |
| Application tokens | Governance, revenue-share or utility inside a single dApp | UNI, AAVE |
| Tokenised “off-chain” assets | Real-world or fiat-backed items brought on-chain | USDC, tokenised Treasuries |
Sector-specific blockchains (payments-only, gaming-only, etc.) are narrower economies; “smart-contract” chains such as Ethereum are full digital economies with multiple sources of demand.
3. A GDP-style framework
Fidelity maps traditional GDP buckets onto on-chain data:
| GDP bucket | On-chain analogue | ETH case study |
|---|---|---|
| Consumption | Gas fees + dApp revenues + NFT sales | DeFi swaps, lending interest, NFT mint fees |
| Investment | Δ in staked ETH + Δ in liquidity-pool deposits | Beacon-chain staking, DEX LP growth |
| Government | Protocol “security budget” (new ETH issuance) + grants from Ethereum Foundation | Validator rewards, developer grants |
| Net exports | Value bridged in/out, stable-coin issuance, DePIN payouts | WBTC from Bitcoin, USDC minted on Ethereum |
Active wallet counts ≈ labour-force participation; gas-price trends ≈ inflation; block-space limits ≈ production capacity.
4. Monetary policy mechanics
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Proof-of-Stake + EIP-1559 link supply to economic activity.
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Base-fee burn destroys ETH whenever block-space is used.
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Validator rewards add ETH, but at a much lower rate than PoW mining.
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Result: ETH supply can turn net-deflationary when on-chain activity is high.
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5. Why it matters for allocators
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Fundamentals, not only narratives – on-chain “GDP” and wallet demographics give hard data for valuation and risk models.
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Diversification – digital-economy currencies offer exposure distinct from commodities, equities or sovereign FIAT.
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Store-of-value test – currencies whose security budgets, demand breadth and monetary rules most resemble robust national economies should capture more long-term value.
6. Key take-aways
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Blockchains are best analysed as open, programmable economies rather than “software projects.”
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Economic-activity metrics (fees, staking, bridge flows) are the crypto analogues of GDP, inflation and trade balance.
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ETH today is the canonical example: multi-sector demand, measurable GDP-like growth, and a monetary regime that can turn deflationary—all of which strengthen its case as a strategic asset for institutional portfolios.