Welcome to another insightful episode of SteadyLads, featuring hosts Taiki, thiccy, Jordi, and Justin, along with special guest Austin Federa from the Solana Foundation. This episode delves into the intricate discussions surrounding cryptocurrencies, their economic implications, and the future of blockchain technology. To hear the full conversation, tune into the full podcast.
The Nature of Tokens and Their Economic Roles
The podcast kicked off with a debate on whether tokens should be viewed as monetary products or equities. Austin Federa, Head of Strategy at the Solana Foundation, provided his insights, emphasizing that the crypto community lacks a deep understanding of this topic. He argued that tokens should not be treated as stocks since they do not represent a claim on discounted cash flows. Instead, the discussion should focus on their distribution and role in the broader economic systems being built by crypto.
From the speaker’s perspective, Austin highlighted that none of the cryptocurrencies, including Solana, should be considered as money. He pointed out that there is a significant gap in liquidity within the Solana ecosystem compared to Ethereum, attributing it to the fact that Ethereum users have been around longer and have more free-flowing cash. Austin also touched upon the systemic relationships in Ethereum that contribute to its liquidity.
Reactions from the hosts included inquiries about the reasons behind the illiquidity of Solana tokens and the structural challenges that might be causing it. Austin’s response was that the ecosystem is still maturing, and the recent events surrounding FTX have led to insecurity among those not deeply involved with Solana.
Centralization, Distribution, and Power Dynamics
The conversation shifted to the centralization of power within the crypto community and the ethical implications of distribution. Austin shared his views on the power dynamics, suggesting that Ethereum is not immune to centralization issues either. He mentioned that many early Ethereum ICO participants sold at the top, similar to market cycles seen in other assets.
From Austin’s perspective, selling is a basic dynamic of a healthy market and should not be viewed as a problem. However, he acknowledged the concerns about the potential for certain players to exert significant influence over a community. The discussion also touched on the concept of money and its various definitions, with Austin challenging the notion that cryptocurrencies, gold, or any highly liquid asset could be considered money in the traditional sense.
Reactions from the hosts included counterpoints about the historical role of gold as money and the social construct of money as an agreement between society members. The debate highlighted the complexity of defining money and the importance of understanding its role in society and the economy.
Future of Blockchain Technology and Solana’s Role
The episode concluded with a forward-looking discussion on the future of blockchain technology and Solana’s place in it. Austin shared his belief that Solana represents a bet on blockchain technology underpinning more of the internet and financial world. He compared Solana to the early days of SaaS, suggesting that while profit margins may currently be lower, the total addressable market is significantly larger.
From his perspective, the scalability and usability of the network are key to its long-term success. Austin also addressed the potential for other blockchains to compete with Solana, emphasizing the importance of serious engineers and developers in the ecosystem. He suggested that the real test for any blockchain is the number of serious developers building on it and the likelihood of finding breakout use cases and mass adoption.
Reactions included questions about the defensibility of intellectual property in the blockchain space and how Solana differentiates itself from other chains competing for low-cost block space. Austin highlighted Solana’s unique features, such as stake-weighted QoS, and its vision for massive scalability.
- “There’s nowhere near enough discussion or understanding of this topic.” – Jordi
- “The average Ethereum user has had a much much much much much much much much much much much much much much much who got in at Ethereum when it was $80 and it’s $2,000 today.” – Austin
- “I think it’s even tenuous to say gold is a money.” – Austin
- “If something is not commonly accepted as tender within an economy, it is not money.” – Austin
- “I think the biggest problems in blockchain over the next five years are not technical. They’re all human.” – Austin
- Debate on whether cryptocurrencies are considered money or not.
- Discussion on the liquidity and market dynamics of Solana versus Ethereum.
- Exploration of the role of the Solana Foundation and its impact on the ecosystem.
- Conversation about the future of blockchain technology and its potential to underpin more of the internet and financial systems.
- Insights into the scalability and performance of Solana and its differentiation from other blockchains.
- Austin’s assertion that no cryptocurrencies, including Bitcoin and Ethereum, are truly money.
- The idea that the value of blockchain networks like Solana is not in being money, but in being a share of a global computer.
- The concept of stake-weighted QOS as a unique feature of Solana that could drive future value accrual.
Notable Quotes:
Discussion Highlights:
Controversial or Unique Ideas:
Concluding Thoughts:
The podcast delved into the complex and often misunderstood topic of cryptocurrencies as money, with Austin providing a nuanced perspective that challenges conventional views. The discussion underscored the importance of human factors in the evolution of blockchain technology and highlighted the potential of Solana as a scalable global state machine. The conversation raised questions about the future of blockchain adoption and the role of communities in shaping the trajectory of digital assets.
