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🎀 sonya (in theory) 🐰 pfp
🎀 sonya (in theory) 🐰
@sonyasupposedly
Project coins are capital formation at internet speed and scale. Okay, first: what is capital formation? It's when money becomes machinery for making more things happen. Various funding sources are combined into a single "pot of gold" dedicated to a particular purpose. Before capital formation, you have disparate financial resources sitting in different accounts, proverbially twiddling their little money thumbs. After capital formation, you have a Real Thing: a startup with runway, a factory with equipment, etc. For example, two founders might combine $50k personal savings, a $100k angel check, and a $25k customer pre-order. Before: hobbyists with a side project and day jobs. After: they can quit those jobs, hire another developer, and focus full-time on executing. Same people, same idea — but now they have the economic ammunition to make it real. That's capital formation. 1/2 👇
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🎀 sonya (in theory) 🐰
@sonyasupposedly
As you know, crypto creates new funding pathways that bypass traditional gatekeepers. Instead of pitching VCs or filing paperwork with banks, builders can launch project coins that let anyone globally participate in funding their venture. Supporters buy your token. You get immediate capital through trading fees / creator rewards. Token holders get potential upside if you succeed. This is useful in the immediate term, as we've seen from several Farcaster teams. But it also affects how the longer term will unfold. The way @w put it is that project coins are an "experiment on the experimentation stack," with the potential to affect all future experiments. From our recent project coins analysis: "The value of the project coin model lies not just in funding individual projects but in developing reusable systems for discovery and resource allocation." Read the whole thing! 👉 https://splits.org/blog/project-coins/
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