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đď¸NEW PODCAST EPISODE
Listen to episode 7 | iTunes | Spotify | YouTube | RSS Feed
Episode: #7
April 13, 2020
Ether has some native mechanisms that contribute to its scarcity and value. David and Ryan explore these value mechanisms and compare/contrast them with money printer go brrrr.
This episode covers:
1. Scarcity mechanisms and fair games
2. Etherâs value mechanisms
3. How USD will fare vs. ETH
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Resources Mentioned:
(Watch)Â Conway's game of life
(Article)Â Ether is equity
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Episode Actions:
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First of all, I wanted to thank Ryan and David for creating the Bankless podcast. It has been a very valuable resource for me as a devoted Ethereum advocate with tons more to learn.
After listening to Episode 7 (my favorite so far), I have a few questions that I would love some feedback on. I write these questions as a huge fan of Ethereum and Bankless, but hopefully you understand that these questions are written to help further my own understanding of the protocol and ecosystem.
1. Can you elaborate on the prioritization of security over monetary policy? To the outside observer, I feel like this could easily be misconstrued as an excuse for the lack of a fixed supply.
2. The three pillars of ETH scarcity are very clear to me. However, all of these pillars are either just now establishing themselves as legitimate forces (DeFi) or are still yet to come to fruition (staking and EIP 1559). How can a legitimate argument be made for scarcity when the network had 5+ years of unregulated supply increases?
It feels like staking and EIP 1559 are fixes to this supply problem, while DeFi is a positive development that luckily gained traction quickly. I agree that the future is bright on the topic of scarcity, but not addressing the 5 years since inception seems disingenuous.
3. On the podcast, a scenario was described where EIP1559 will potentially allow a burn rate that may eventually outpace the minting of new ETH. Under this scenario, isn't there a possibility in x years (in a vacuum) where all ETH are burned? How is this conversation being addressed?
4. On the burn rate, is the goal for the burn rate to perfectly match the inflation rate to stabilize the supply at a fixed amount? If not, how does a narrative of scarcity hold validity if we are continuing to increase supply over time?
I don't intend to come off as skeptical, but I have learned over the years that I learn the most when I ask questions from the point of view of a skeptic. Thanks for all you guys do and keep up the great work!