Web3 vision: DeFi and tokens as a new asset class
Thread400 words
Short vision thread arguing blockchains and DeFi form the infrastructure of a decentralized internet of value, and that tokens create an asset class where holders own protocol shares and revenue instead of company equity.
0/ short 🧵 on my vision for #web3, the role #DeFi plays in that & how the emergence of cryptographic tokens has created an entirely new asset class 🔮✨
a few thoughts (0/10)👇
1/ I believe that public, decentralized blockchains & their application layers will provide the technological infrastructure for the next step of the evolution of the internet. A decentralized internet of value that natively supports financial services & ownership rights
2/ an internet that does not rely on intermediaries & centralized actors. An internet built on open protocols & decentralized blockchain networks that will become the backbone of a more efficient and equitable economy (a.k.a. web3)
3/ web3 addresses the core issues of Web 2.0. It’s a comprehensive vision of a decentralized, community-owned & community-governed internet that is immutable and resilient to both censorship & surveillance
4/ decentralized finance (a.k.a. DeFi) on the other hand aims to create a more accessible and efficient financial system. My broader interpretation of the term web3 merges DeFi into the vision of web3 as a core element in the internet’s future architecture
5/ financial services that are natively integrated into the internet are a core building block of a decentralized internet that natively supports the free flow of value & ownership rights and that puts control back into the hands of the users
6/ another powerful feature of web3 is the tokenized decentralization of both ownership structures and control as users & builders can own pieces of the internet through tokens, both fungible and non-fungible (NFTs)
7/ fungible tokens typically convey ownership & governance rights over protocols, but also capture some of the value generated by the protocol. Often, these tokens also provide access to a protocol’s services
8/ NFTs on the other hand give users the ability to own digital objects which can be virtually anything ranging from art, photos, code, music or in-game objects to credentials, governance rights and access passes
9/ as these various forms of cryptographic tokens finally enable efficient funding mechanisms for the open-source infrastructure needed to build out this vision of a decentralized internet, they have seen great adoption throughout the space and created an entirely new asset class
10/ under this new investment paradigm, you don’t own part of a company, you own part of a protocol. You don't hold shares, you hold tokens. You don’t earn dividends, you earn a share in protocol revenue
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