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A Summary of

Funding the evolution of blockchains

by
Fred Ehrsam
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Lack of economic incentives prohibit development of blockchains

  • Launching a token makes millionaires leading to more people working on tokens rather than the codebase
  • Improvements in protocols hold the potential of increasing the value of Ethereum by 10%

Possible incentives

  • Private funding – unable to scale to the value that can be created by upgrading protocol
  • Public crowdfunding – falls victim to the tragedy of the commons
  • Inflation funding – involves everyone in the community chipping in to improve infrastructure By taking advantage of a blockchain’s decentralized nature, protocol designers can obtain a superior evolutionary algorithm.
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