8-1b3f1 You can value tokens using traditional financial metrics (e.g., PE ratio) by studying the cash flows and burn rates of blockchain networks

Or is it?develop

Any app that does this already?develop
E.g., Nansen?

• 2-1a7a3 Ben Graham - ‘Markets are a voting machine in the short term and a weighing machine in the long term’

  • 2-1a7a2 Assets with actual substance or weight have the best prospects over the long term
    • Remember Ray Dalio’s principle: [Prioritize increasing your productivity over micromanaging your income and financing]
      • 2-1a7a1 (1) Increase your productivity; (2) Don’t let your income increase faster than your productivity; (3) Don’t let your debt increase faster than your income
    • Just because something wins a popularity contest today doesn’t mean it will age well
      • [Play different game with different rules with different time horizon]!
        • 2-1b3 Play different games. Avoid competition.
        • 2-1b1 ‘Asymmetric warfare’ - Play by different rules
        • 2-1b2 Play in different time horizon. That is, in the long-run.

• You don’t really have to predict price, but you have to figure out the incentive structure of each ecosystem (e.g., does the smart contract reward meritocracy?). Remember: proper incentives usually lead to proper results!develop

  • 2-1a6 ‘Incentives’ - Incentives drive (almost) everything. Understand your incentives.
    • 8-1b3f A blockchain economy must balance the supply (‘faucets’) and demand (‘sinks’) of native tokens to fuel sustainable growth
      • 8-1b3g Poor faucets-sinks design can lead to the problem of ‘only the rich can deploy’