8-2b2b1 Low take rates have a multiplier effect

• Internet startups undercut the high prices of traditional businesses

• Blockchain networks expose the high take rates of corporate networks

  • From thick networks to thin networks
    • But remember: 6-3b3g1 Network effects also affect blockchain networks

• 8-2b2b2 Take rates + Token incentives = Economic equation for blockchain networks

  • 6-3b4 Tokens are the natural asset class to provide a sensible organizational structure for networks

• More control over network = More control over price (e.g., higher take rates and pricing power)

  • 5-1b1b1a1 Things can become easier the more complexity you have (Network effects = Power-law)
    • 2-1a6c1 ‘Tendency to minimize energy output’ - Align your incentives properly, then (almost) everything will follow
  • 6-3b2 In corporate networks you can only quit
    • The problem is that it’s not that easy to leave a platform if it’s big enoughdevelop
      • 7-1b3d New stars rise along with the new platform
        • But again, although blockchain networks have incentive to lower take rates and they remain immutable, 6-3b3g1 Network effects also affect blockchain networksdevelop