36 - The DeFi Blockspace Cycle | Nic Carter

🚀 SUBSCRIBE TO NEWSLETTER: http://bankless.substack.com/

✊ STARTING GUIDE BANKLESS: https://bit.ly/37Q17uI

❤️ JOIN PRIVATE DISCORD: https://bit.ly/2UVI10O

🎙️ SUBSCRIBE TO PODCAST: http://podcast.banklesshq.com/

👕 BUY BANKLESS TEE: https://merch.banklesshq.com/
-----

GO BANKLESS WITH THESE SPONSOR TOOLS:

🌐 UNSTOPPABLE DOMAINS - HUMAN READABLE ETHEREUM & CRYPTO ADDRESSES https://bankless.cc/unstoppable

🌈 ZAPPER - ULTIMATE HUB FOR DEFI - ZAP INTO DEFI http://bankless.cc/zapper

💳 MONOLITH - GET THE HOLY GRAIL OF BANKLESS VISA CARDS https://bankless.cc/monolith

🤖YEARN - YIELD-SEEKING MONEY ROBOT THAT FARMS DEFI FOR YOU http://bankless.cc/yearn

------

36 - The DeFi Blockspace Cycle | Nic Carter

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 disecting the data that created these conclusions. Nic gives his perspective as to the ultimate pattern that emerges from this data.

David reads Nic's article aloud on the Bankless YouTube! Useful for listening to the episode! https://www.youtube.com/watch?v=RZ1X_3I5KrI&t=666s

Actions & Resources:

Read Nic’s articles Ethereum’s Fees Mean Choosing Between a World Computer and a Financial Network https://www.coindesk.com/ethereums-fees-mean-choosing-between-a-world-computer-and-a-financial-network

Public Blockchain Fee Cyclicality and Negative Feedback Loops https://medium.com/@nic__carter/public-blockchain-fee-cyclicality-and-negative-feedback-loops-1620141a8a87

The Adaptive Markets Hypothesis Robert Low https://blogs.cfainstitute.org/investor/2017/12/18/the-adaptive-markets-hypothesis-a-financial-ecosystems-survival-guide/

https://www.alphasimplex.com/wp-content/uploads/2004/09/The-Adaptive-Markets-Hypothesis.pdf

------

Don't stop at the video!

Subscribe to the Bankless newsletter program http://bankless.substack.com/

Visit the official Bankless website for resources http://banklesshq.com/

Follow Bankless on Twitter https://twitter.com/BanklessHQ

Follow Ryan on Twitter https://twitter.com/ryansadams

Follow David on Twitter https://twitter.com/TrustlessState

Follow DeFi Dad on Twitter https://twitter.com/DeFi_Dad

-----

Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research. Disclosure. From time-to-time we may add links in this channel to products we use. We may receive commission if you make a purchase through one of these links. We'll always disclose when this is the case.