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Emin Gun Sirer opined that fees burned is a good measure of economic usefulness. Isn’t it great that anyone can help create parts of the Avalanche blockchain without having to buy earth-destroying mining rigs?
Pointing to Genesis Digital Assets Acquiring 20,000 Bitcoin Mining Rigs, he stated, Also, notice that all those 20,000 rigs are concentrated in just one hand. They don’t contribute to decentralization.
Someone asked: Are there trustless Bridges between Avalanche and Ethereum DEXes? Can someone get AVAX with ETHER without signing up for an exchange?
Emin replied: Yes, absolutely. One can cross over the bridge.avax.network and then head over to pangolin.exchange or Trader Joe to swap wrapped ether (WETH.e) to AVAX.
Someone tried to recall how in the past Emin stated, It’s a Bitcoin maxi mistake to measure success by fees paid.
Emin clarified stating, true, it’s not the only metric. The ideal here is to support many transactions, each with low fees. Otherwise, normal people get priced out and the chain belongs to whales/bots/sharks.
Someone asked: Then why are you trying to decrease them?
Emin replied: Top game here is to lower each individual fee, and yet collectively burn as much as possible.
Community response: 1) if you create more than burn then it is still net inflationary 2) if you HODL crypto against inflation how can you say it isn’t useful 3) valid layer 2 solutions (liquid/lightning) lead to less transactions and less fees = more useful base layer.
No better marketing than having good ponzinomics. (Usefulness + inertia) * Congestion. Low fees are superior to high fees. High fees are only a proxy for demand when supply is restricted.
What is the definition of protocol revenue? Who gets the revenue? I think this refers to gas used. Which in that case no one gets the revenue, its burned.
People chasing lesser incentive programs when the real fun hasn’t even begun on Avalanche will end up missing out and buying everything back at a premium.
The problem is that AVAX revenue is 1/100th that of ETH, but the fully-diluted valuation is closer to 1/10th. It’s radically overvalued.
Optimists are like: Avalanche has global-scale throughput, nearly instant immutable and irreversible finality, low cost and dynamic fees in addition to a protocol which is green and quiescent. Avalanche is blockchain 3.0 technology. The blockchain platform of tomorrow available today.
Pointed to how 7 day cumulative protocol revenue for @avalancheavax continues to grow and has surpassed major Dapps like AAVE, Sushi and MakerDAO. This growth is prior to both AAVE & Curve deploying on Avalanche & the major incentives rush. This is not rocket science frens.
