Amazing end to the week!
'Corporate Explainer' my first piece on my new FND collection was picked up by @fadetospace for 0.6 ETH
βοΈthank you for supporting my work βοΈ
@gigioambro Sure, but you can only have this kind of assumption if you look at other variables and think about valuing the protocol with some other mental model. My point here is just that this dcf can't possibly have a dollar value for eth since all of the revenue is paid in eth...
@AdrianoFeria@bankless@ryanallis With 40mm eth staked, validators will have an all in yield of around 6,5%. With 65mm eth this comes down to ~5%. If yield come down, stakers unstake and yield goes up again. Of course, some directional bet on eth will always be a part of this equation
@AdrianoFeria@bankless@ryanallis the model doesn't run any sensitivities on the amoun of eth staked -> this should balance out with a yield that's attractive enough relative to other market opportunities
@AdrianoFeria@bankless@ryanallis exactly, there is no single source of truth. you must understand the strenghts and limitations on the analysis you're making -> https://t.co/CHiJCDTXAR
At the end of the day, eth will have value if there is demand for the product it is selling (block space). Beware of MBAs brandishing their models as a source of truth. DCFs are like the Hubble Telescope. Move your settings by an inch and you end up in a different galaxy
btw, I'm very bullish on eth here. The burn and the staking rewards make for a very sound monetary policy for this nation of ours. But seeing the way this DCF is being treated reminds me of Dennett's quote "There's nothing I like less than bad arguments for a view I hold dear"