Protocols in Web3 are No Longer Nations

In Web3, protocols have become like nations. They have their own economies and governance systems, issuing grants in both fiat currency (USD) and cryptocurrency (ETH). The goal is to incentivize early adopters of cryptocurrencies by burning dollars and bringing more value into the Ethereum ecosystem. Companies like Coinbase and airports play a role in this process. Whales in the crypto space can stake their assets and earn more money over time, so even though they may be rivals, it's beneficial for them to issue grants and improve the user experience of airports and industries within the Ethereum community, such as play2earn.

According to tkgshn, creating Web3 services is equivalent to creating a nation. It's not just about generating revenue, but also about building governance and economic structures to increase the Gross Domestic Product (GDP). This tweet emphasizes the idea that DAOs are like states and layer 1 blockchains should be valued based on their GDP. It's not about treating them as stocks, but rather as countries. tmiyatake1 and divine_economy also discuss the concept of DAOs as states and the ideological belief that underpins the value of currencies.

TaschaLabs argues that layer 1 blockchains should not be valued like stocks, but rather like countries. They propose a different framework for evaluating their worth, focusing on factors such as total circulation, which is more akin to the image of a country. This perspective is contrary to the practice of applying a traditional value investing framework to cryptocurrencies.

EmmaBWaldron suggests that winning Web3 protocols should be designed like countries. They should gather people based on shared beliefs, just as the United States does with the Pledge of Allegiance, or China with the ideals promoted by Mao Zedong and the People's Liberation Army. Autonomy within the community is also crucial, allowing for democratic processes, freedom of speech, and even the right of revolution based on natural law. Additionally, issuing tokens that can be redistributed within the community is an important aspect of the economic design, similar to how countries create their own currencies to pay workers for necessary tasks.