The Gwart Show | Blockspace Media

Haseeb and Gwart arguing while Tarun writes a research paper

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Apr 20, 2025
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INSIGHT

Three Components of L1 Valuation

  • L1 valuations combine three components: utility (consumptive use), equity (fee generation), and monetary use.
  • No agreed market formula exists; valuations are complex and nuanced.
INSIGHT

Single Monetary Good Dominance

  • Most L1 tokens have a very low chance of becoming money and are primarily utility tokens.
  • Long-term, a single monetary good will dominate while others approach utility value.
INSIGHT

Proof-of-Stake Economic Equilibrium

  • In proof of stake systems like Ethereum, network security adjusts to token price via stake incentives.
  • Inflation and deflation reach equilibrium based on staking participation and yield compression.
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