Nick Szabo  🔑

My 2 cents: 1. I's stay away from on-chain governance; I think Eth "team" just needs to be better structured (important: decentralization != no structure) 2. Ethereum --> scalable & secure tech should be the priority now, Ether --> SoV will naturally come into focus after this.

Agree with both, especially #2. It will be hard (IMO) to get to ether -> SoV long-term narrative without upgrading utility to devs in the near-term. I think SoV focus actually might have made more sense when there was less competition, but now ETH has to be more...adaptive.

Exactly. If there's no "dev utility", there's *zero* chance for Ether to become SoV, no matter how "SoV-optimized" it is. Once we have dev utility, Ether SoV-optimization makes a ton of sense. One can even write a simple math function to explain this.

Utility drives demand for ETH, making it a store of value.

#DeFi restricts the supply side of ETH, increasing SoV characteristics. Both together symbiotically gives it value.

@RyanSAdams ^ (2 tweets) Investment thesis?

Yeah. I mean, thesis is pretty similar to a commodity like gold: First, it's a useful metal for ornamental / industrial use (like Eth Gas/staking) Then, it becomes a SoV when an economy starts to store it value in it (like Eth in CDP/defi) This gets reinforce in adoption waves

I also mean to pay for gas. If there are applications on Ethereum that make sense and are valuable, but have nothing to do with finance, they still drive demand for the asset (such as a commodity like gold does), meaning it absolutely has value above and beyond just meme-money