@matthewcopperfie
Assessment begins with identifying predictable revenue sources: transaction fees, protocol usage, licensing, or service subscriptions. Analyze historical growth, stickiness of demand, and whether revenues are cyclical or recurring. Model adoption curves based on active users, TVL, or throughput, and stress test under bearish scenarios. Strong long-term potential correlates with defensible moats: network effects, integration depth, or regulatory positioning. Compare fee capture to competitors and evaluate whether revenue accrues to token holders via burns, buybacks, or staking rewards. Adjust for operating costs such as infrastructure, grants, and security audits. A credible path to sustainable free cash flow, rather than speculative activity, signals genuine longevity.
0 reply
0 recast
0 reaction