Level up your open finance game five times a week. Subscribe to the Bankless program below.
🎙️NEW PODCAST EPISODE
Listen to episode 36 | iTunes | Spotify | YouTube | RSS Feed
Tools from our sponsors to go bankless:
🌐 UNSTOPPABLE DOMAINS – GET A HUMAN READABLE CRYPTO DOMAIN
🌈 ZAPPER – THE ULTIMATE HUB FOR DEFI YIELD FARMING
💳 MONOLITH – GET THE HOLY GRAIL OF BANKLESS VISA CARDS
💸 AAVE – BORROWING AND LENDING DEFI ASSETS
Episode: #36 – The DeFi Blockspace Cycle | Nic Carter
October 26th, 2020
Nic Carter recently released an article titled “Public Blockchain Fee Cyclicality and Negative Feedback Loops“…
Simplified “transaction fees get higher, and that incentives people transact less, and then that lowers transaction fees and that incentives people to transact more”
According to Nic, there’s no equilibrium found upon public blockchains with inflexible block size; the demand to purchase blockspace will always be volatile, across all time frames.
Another perspective: constraints on blockspace availability dramatically impacts the kind of usage that is feasible to happen on the base-layer blockchain.
Transactors who are transacting large transactions will pay for higher fees! This severely impacts the markets that are supported by public blockchains! Constraints on block space are constraints on market participants!
David, Ryan, and Nic go through Nic’s process is dissecting the data that created these conclusions.
And Nic gives his perspective on the ultimate pattern that emerges from this data.
Resources discussed
-
📄 Ethereum’s Fees Mean Choosing Between a World Computer and a Financial Network
-
📄 Public Blockchain Fee Cyclicality and Negative Feedback Loops
Episode Actions
-
Read Nic’s piece on fee cyclicality (Or listen to it here!)
-
Give Bankless 5-stars to help grow the Nation!
Also…subscribe to Bankless YouTube to watch State of the Nation every Tuesday.
Subscribe to the podcast on iTunes | Spotify | YouTube | RSS Feed
Leave a review on iTunes
Share the episode with someone you know!
Don’t stop at the podcast!
-
Subscribe to the Bankless newsletter program
-
Visit the official Bankless website for more resources
-
Follow Ryan on Twitter
-
Follow David on Twitter
-
Follow Lucas on Twitter
Go Bankless. $12 / mo. Includes archive access, Inner Circle & Deals—(pay w/ crypto)
Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.
Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive a commission if you make a purchase through one of these links. I’ll always disclose when this is the case