Unchained

What's a Fair Value for Crypto Networks Like BTC, ETH and SOL? - Ep. 721

Listen Later

How do you determine the value of decentralized networks like Bitcoin, Ethereum, or Solana? It’s not as straightforward as traditional investments.

Jon Charbonneau, general partner at crypto investment firm DBA, joins Unchained after writing a paper that dives deep into the complexities of valuing blockchain networks. He explains why applying traditional equity models to networks such as Bitcoin falls short, how tax inefficiencies in staking rewards impact valuations, and whether Layer 2 solutions like Optimism and Arbitrum are helping or hurting the long-term value of Layer 1 blockchains.

Also, he looks at the big question—are these networks sustainable in the long run?

Show highlights:

  • What motivated Jon to write the paper
  • What the main points of the paper are
  • Why tax inefficiencies in staking rewards are a critical factor in valuing decentralized networks and how they differ from traditional corporate taxes
  • What makes valuing networks tricky, as Jon explains how proof-of-work vs. proof-of-stake systems differ from traditional equity models
  • How he thinks about valuing Layer 2s and whether they are parasitic to the L1
  • Whether blockchains are sustainable in the long term


    • Visit our website for breaking news, analysis, op-eds, articles to learn about crypto, and much more: unchainedcrypto.com

    Thank you to our sponsors!
    • Polkadot
    • Mantle’s FBTC
      • Guest
      • Jon Charbonneau, co-founder and General Partner at DBA
      • L1 & L2 Token Value Capture
        • Links
        • Previous coverage of Unchained on this topic:
        • How to Figure Out Whether a Crypto Token Is Worth Its Trading Price
        • ETH Is Down Bad, While Layer 2s Are Ripping. Are L2s Parasitic to Ethereum?
        • Are Layer 2s Parasitic to Ethereum and ETH as an Asset?
        • Are L2s ‘Parasitic’? Analysis Shows Ethereum Only Gets a Tiny Percentage of Fees
        • Ether-Bitcoin Ratio Is at Multi-Year Lows, But It’s Just ‘Temporary’ and an ‘Opportunity’


          • Timestamps: 

          • 00:00 Intro
          • 01:25 What sparked Jon's interest in this topic?
          • 03:35 Key takeaways from the paper
          • 08:30 How staking taxes could change the game
          • 13:46 Why traditional models fail for blockchain
          • 20:10 Are Layer 2s helping or hurting Layer 1s?
          • 26:51 Can blockchains survive long term?
          • 29:20 News Recap

            • Learn more about your ad choices. Visit megaphone.fm/adchoices

            ...more
            View all episodesView all episodes
            Download on the App Store
            UnchainedBy Laura Shin
            • 4.6
            • 4.6
            • 4.6
            • 4.6
            • 4.6

            4.6

            1,184 ratings

            More shows like Unchained

            View all
            Real Vision: Finance & Investing by Real Vision Podcast Network

            Real Vision: Finance & Investing

            914 Listeners

            CoinDesk Podcast Network by CoinDesk

            CoinDesk Podcast Network

            646 Listeners

            The Breakdown by Blockworks

            The Breakdown

            741 Listeners

            The Pomp Podcast by Anthony Pompliano

            The Pomp Podcast

            1,842 Listeners

            On The Brink with Castle Island by Castle Island Ventures

            On The Brink with Castle Island

            288 Listeners

            What Bitcoin Did by Danny Knowles

            What Bitcoin Did

            268 Listeners

            Markets Outlook by CoinDesk

            Markets Outlook

            136 Listeners

            The Wolf Of All Streets by Scott Melker

            The Wolf Of All Streets

            243 Listeners

            Empire by Blockworks

            Empire

            168 Listeners

            Supply Shock by Blockworks

            Supply Shock

            109 Listeners

            Coin Stories by Natalie Brunell

            Coin Stories

            438 Listeners

            Raoul Pal: The Journey Man by Real Vision Podcast Network

            Raoul Pal: The Journey Man

            135 Listeners

            Forward Guidance by Blockworks

            Forward Guidance

            276 Listeners

            The Milk Road Show by The Milk Road Show

            The Milk Road Show

            51 Listeners

            Limitless Podcast by Limitless by Bankless

            Limitless Podcast

            66 Listeners