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I see lots of protocols proposing ve gauges as a way to fix their Tokenomics woes.
In this thread, I explain why ve gauges is objectively a bad mechanism to implement for your protocol!
It doesn't solve any problems while creating massive ones and needs to go away.
1/🧵
20/ Assorted additional context:
- Why those 4 tokens? Least likely to be deemed securities.
- Historical fact: the Big Banks (JPM, GS, etc.) were opposed to decimalization initially. Stocks were traded in 1/8ths and 1/16th etc. The 'new faction' was comprised of folks like Knight Capital, Citadel, DRW, WorldQuant and others... The SEC under @ArthurLevitt encouraged modernization of financial markets in that era
More on the 'factions':
- The old faction, legacy Wall St investment banks, benefits from opacity b/c the bid/ask spreads are higher and it's a club game - competition is limited and spreads are maximized.
- Citadel, Virtu, MarketAxxess also have their own club game. Their the barrier to entry is massive investment in technology, speed and talent.
- These 2 factions resemble the battle between Big Banks and Big Tech - both have edges in regulation and technology respectively
- Robinhood's payment-for-order-flow partner was Citadel. RobinHood is a competitor to classic Wall Street brokerage
- tl;dr Citadel has a good history of competing with legacy wall street firms in the eye