The Moloch equilibrium Farcaster is in right now:

1. Founder builds a PMF mini app.
2. Finds that PMF mini app can capture entire Farcaster audience. (It's great)
3. Finds that growing outside of the Farcaster distribution is the way to re-underwrite the project for investors.
4. Result: Every founder thinks that way therefore Farcaster, the protocol, doesn't grow. It stops finding investors that want to keep underwriting it. Eventually even the projects which built on top of it fail too as their PMF fades by virtue of the substrate protocol failing.

This is what @ameensol and @jamesyoung discovered happened to "ETH 2.0" when it failed scaling in 2018. I lived through this on Ethereum with them.

So by launching MolochDAO @ameensol and @jamesyoung successfully re-educated the Ethereum community to stop just investing in dapps.

Farcaster is literally caught in that Moloch trap. How to fix this?

Best possible reading material:

The Moloch equilibrium Farcaster is in right now:

1. Founder builds a PMF mini app.
2. Finds that PMF mini app can capture entire Farcaster audience. (It's great)
3. Finds that growing outside of the Farcaster distribution is the way to re-underwrite the project for investors.
4. Result: Every founder thinks that way therefore Farcaster, the protocol, doesn't grow. It stops finding investors that want to keep underwriting it. Eventually even the projects which built on top of it fail too as their PMF fades by virtue of the substrate protocol failing.

This is what @ameensol and @jamesyoung discovered happened to "ETH 2.0" when it failed scaling in 2018. I lived through this on Ethereum with them.

So by launching MolochDAO @ameensol and @jamesyoung successfully re-educated the Ethereum community to stop just investing in dapps.

Farcaster is literally caught in that Moloch trap. How to fix this?

Best possible reading material: https://slatestarcodex.com/2014/07/30/meditations-on-moloch/

I asked ChatGPT what it thinks Scott Alexander's essay suggests of how to overcome the Moloch equilibrium trap

@vitalik.eth since you steered Ethereum through this phase successfully. What do you think made the difference for Ethereum to overcome the trap?