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Onchain Economics

Guides

Guides related to the economics of onchain economics, the intersection of the crypto and macro, and onchain metrics.

Apply what you learn

Use these interactive tools alongside the guides to analyze real data.

Protocol Economics

Incentives, mechanism design, and token models that shape protocol behavior over time.

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Feb 06, 2026

The monetary policy of Layer 1s: how token emission schedules mirror central banking

Compare Bitcoin halvings, Ethereum burns, and Solana disinflation to central bank monetary policy frameworks. Understand how protocol-level money supply rules shape token value.

Feb 06, 2026

MEV as a hidden tax: measuring the deadweight loss of blockchain extraction

Frame MEV through public finance economics: tax incidence, deadweight loss, and rent-seeking. Quantify how much MEV costs users and evaluate whether solutions like Flashbots reduce this invisible tax.

Feb 06, 2026

Harberger taxes and onchain property rights: radical markets meet NFTs and domain names

How blockchain enables the first real implementations of Harberger taxation for digital property. Analyze live experiments in partial common ownership across ENS names, virtual land, and NFTs.

Feb 06, 2026

Onchain treasury management: how DAOs allocate capital vs. corporate finance

Compare DAO treasury strategies to corporate capital allocation frameworks. Identify common failures in concentration risk, grant spending, buyback timing, and compensation structures.

Jan 19, 2026

RWA tokenization: how traditional assets become blockchain tokens

Understand the complete tokenization process from asset selection through token issuance to secondary market trading, including participant roles and economic considerations.

Jan 19, 2026

RWA finance: how real world assets are transforming DeFi

Understand how RWAs integrate with DeFi protocols, the benefits and risks of this integration, and how it's changing the decentralized finance landscape.

Jan 19, 2026

Oracle risk in prediction markets: what happens when resolution fails

How prediction markets determine truth through oracles, the economics of securing resolution, and what happens when the system fails.

Jan 19, 2026

Prediction market mechanics: where the odds actually come from

How prediction markets work at the protocol level, from order book and AMM designs to share pricing and resolution mechanisms.

Jan 19, 2026

Prediction market fees and value accrual: who captures the spread

How prediction markets generate revenue through trading fees, resolution fees, and spreads, with comparison across Polymarket, Kalshi, and decentralized alternatives.

Jan 19, 2026

Conditional prediction markets: building complex bets on-chain

How conditional prediction markets enable correlation trading, complex hedging, and composability with DeFi primitives.

Jan 13, 2026

Tokenomics red flags: 7 warning signs in a token's economic design

Identify bad tokenomics before investing using this checklist of concentrated ownership, aggressive vesting, unlimited supply, and other warning signs.

Jan 13, 2026

Token buybacks vs dividends: which value accrual mechanism works?

Compare buyback and dividend models for protocol value accrual with real data from MakerDAO, BNB, GMX, and Curve.

Jan 13, 2026

Stablecoin yield: where does the 5-8% actually come from?

Trace the actual cash flows behind stablecoin yields from T-bills to lending spreads to token incentives, with risk assessment framework.

Jan 13, 2026

How to read a protocol's revenue

Learn how to find, interpret, and analyze protocol revenue data using the five core metrics that separate sustainable projects from unsustainable ones.

Jan 13, 2026

Ponzinomics vs real yield: a framework for evaluating DeFi returns

Use the 5-point scoring system to distinguish sustainable protocol yields from unsustainable token emission schemes.

Jan 13, 2026

MEV explained for normal people: how bots profit from your trades

Understand what MEV is, how sandwich attacks and front-running work, and practical steps to protect your trades.

Jan 13, 2026

The real cost of Ethereum L2s: where your fees go

Trace L2 fee flows from your wallet through sequencer operations to L1 settlement, and understand who profits from each transaction.

Jan 13, 2026

Why gas fees don't go to ETH holders (and what actually does)

Understand exactly where your Ethereum gas fees go: base fee burns, validator tips, and how value actually accrues to ETH holders.

Jan 13, 2026

Bitcoin halving economics: what actually happens to miner revenue and network security

Analyze the real impact of Bitcoin halvings on miner economics, security budgets, and the long-term fee market sustainability question.

Jan 13, 2026

The hidden economics of airdrops: who pays when tokens are 'free'?

Understand who actually bears the cost of airdrops through dilution, treasury depletion, and sell pressure dynamics.

Jan 10, 2026

Onchain profit: why most protocols don't have it

Profit is revenue minus all expenses including emissions. Most DeFi protocols are unprofitable when token incentives are properly accounted.

Jan 09, 2026

DeFi business models explained

How DEXs, lending protocols, perps, LSTs, and L2s generate revenue with different cost structures and sustainability profiles.

Jan 08, 2026

Sequencer revenue and L2 economics

L2 sequencers earn fees from users and pay costs to Ethereum. Learn how margins vary with L1 gas and why most sequencer revenue doesn't reach tokenholders.

Jan 05, 2026

Emissions vs revenue: why token incentives are expenses

Token emissions are costs, not revenue. Learn how to measure emissions-to-revenue ratios and assess protocol sustainability.

Jan 03, 2026

How to read a DeFi income statement

Apply GAAP-like income statement principles to protocol economics: map fees, revenue, and profit for any DeFi protocol.

Jan 02, 2026

Tokenholder revenue vs protocol revenue

Protocol revenue and tokenholder revenue are different. Most protocols earn revenue but deliver nothing to tokenholders without explicit mechanisms.

Jan 01, 2026

Treasury management for protocols

How protocols should manage treasuries: runway calculation, diversification, burn rate control, and common mistakes to avoid.

Jan 01, 2026

Protocol economics primitives: a starter mental model

A lightweight framework for thinking about incentives, value flows, and constraints in onchain protocols.

Dec 30, 2025

MEV explained like an income statement

MEV is revenue when captured by protocols, a hidden tax when extracted from users. Learn who captures MEV and why it rarely accrues to tokenholders.

Dec 30, 2025

Cost of funds in DeFi

What protocols pay capital providers (LPs, stakers, validators) is cost of funds, not profit sharing. Learn why ignoring this breaks profitability analysis.

Dec 29, 2025

Bribes, rebates, and kickbacks in DeFi

How to account for bribes as expenses when paid and revenue when received, with correct income statement treatment.

Dec 28, 2025

Liquidity mining: what worked and what didn't

Why early liquidity mining succeeded, why returns diminished, and lessons for rational incentive program design.

Metrics

Practical, decision-useful metrics for onchain businesses and protocols.

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Feb 06, 2026

Onchain velocity of money: does MV=PQ work for token economies?

Apply the equation of exchange to crypto tokens. Understand why high-velocity tokens face structural price pressure and where the classical framework breaks down onchain.

Feb 06, 2026

Crypto as a parallel balance of payments: capital flows between chains

Treat each L1 and L2 as a small open economy. Map bridge flows, stablecoin migration, and TVL shifts using balance of payments accounting to identify surplus and deficit chains.

Jan 19, 2026

Onchain accounting: how blockchain changes financial record-keeping

Understand what onchain accounting means, how it differs from traditional bookkeeping, and why it matters for crypto businesses and potentially all of finance.

Jan 10, 2026

TVL explained: what it measures (and what it doesn't)

A practical guide to Total Value Locked, how it's calculated, and how to avoid common interpretation mistakes.

Jan 08, 2026

DeFi unit economics: LTV, CAC, and payback

Apply customer acquisition cost and lifetime value analysis to DeFi protocols for sustainable growth assessment.

Jan 07, 2026

Gross margin in DeFi protocols

Gross margin is retained revenue as a percentage of gross fees, measuring protocol efficiency at capturing value after pass-throughs.

Jan 07, 2026

Fees vs revenue vs profit: the DeFi accounting guide

Most crypto dashboards mislabel metrics. Learn the precise definitions of fees, revenue, and profit for accurate protocol analysis.

Jan 06, 2026

TVL vs revenue: why the balance sheet isn't the income statement

TVL measures locked capital at a point in time. Revenue measures value captured over time. Learn when each metric matters and when it misleads.

Jan 06, 2026

What is protocol revenue? The definitive guide

Protocol revenue is retained value after pass-throughs, not total fees. Learn the precise definition and how to measure it correctly.

Jan 05, 2026

Payback period for token incentives

How long until user-generated revenue exceeds acquisition cost? Most DeFi incentives have infinite payback because users leave when rewards end.

Jan 03, 2026

Take rate in crypto protocols

Take rate is the percentage of fees a protocol retains after pass-throughs. It reveals business quality that gross fee metrics hide.

Jan 02, 2026

Real users vs subsidized activity

How to distinguish genuine user demand from incentive-driven activity that collapses when emissions end.

Dec 30, 2025

Stablecoin supply and flows as a signal

Stablecoin supply changes and chain-level flows reveal capital deployment better than token prices driven by speculation.

Dec 28, 2025

Onchain cash flow: stablecoins as the unit of sustainability

Track protocol sustainability through stablecoin-denominated cash flows. Learn what counts as cash onchain and how to monitor treasury health.

Yield

Where yield comes from, how it’s sustained, and how to compare opportunities.

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Valuation

Frameworks for valuing tokens and protocols using cashflows, risk, and comparables.

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Thesis

Clear theses about markets, primitives, and why onchain systems might win.

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Feb 06, 2026

The stablecoin trilemma: decentralization, stability, and capital efficiency

Every stablecoin design sacrifices at least one of three properties. Map USDC, DAI, and algorithmic stablecoins onto the impossible trinity from international economics.

Feb 06, 2026

Credit markets without credit scores: how DeFi lending reprices risk

How overcollateralization and algorithmic interest rates replace credit scores in DeFi, what the resulting rates reveal about trustless credit, and why the spread over Treasuries prices decentralization risk.

Feb 06, 2026

The Phillips Curve of crypto: token inflation, staking yields, and network activity

Investigate whether higher token emissions buy network activity the way inflationary policy reduces unemployment. The short-run tradeoff is real. The long-run breakdown is predictable.

Jan 19, 2026

What are real world assets (RWA)? Bridging traditional finance and blockchain

Understand what RWAs are, why they matter in crypto, and how they connect blockchain technology to traditional asset classes like bonds, real estate, and commodities.

Jan 19, 2026

What is onchain? The foundation of transparent finance

Understand what onchain means, how it differs from traditional financial systems, and why blockchain transparency changes economics.

Jan 19, 2026

The economic impact of tokenization: how RWAs will reshape global finance

Understand the macroeconomic implications of widespread asset tokenization: capital market efficiency, financial inclusion, industry disruption, and the infrastructure transition ahead.

Jan 19, 2026

Real world assets in crypto: market overview and investment considerations

Understand the current RWA crypto landscape, major protocols and issuers, market size, and how to evaluate RWA investments critically.

Jan 19, 2026

Real world assets explained: from physical property to digital tokens

Understand the full scope of real world assets, how tokenization works mechanically, and the economic implications of bringing traditional assets onchain.

Jan 19, 2026

Prediction markets vs polls: a framework for information quality

When prediction markets outperform polls and when they don't, with a decision framework for choosing the right information source.

Jan 19, 2026

Prediction market regulation: CFTC, offshore, and on-chain

Why Kalshi is legal in the US and Polymarket isn't, how regulatory frameworks differ globally, and what clarity would change.

Jan 19, 2026

Onchain wallets explained: self-custody and why it matters

Understand what onchain wallets are, how they differ from exchange accounts, and how to evaluate whether self-custody fits your needs.

Dec 31, 2025

Onchain auditability: why verifiable revenue changes everything

Public ledgers enable continuous verification of protocol claims. Learn how auditability creates market premiums and enables citizen-detected fraud.