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If there was a positive return on token spend they wouldn’t be capping it now would they?
by jazzyjackson 4mo ago
If there was a positive return on token spend they wouldn’t be capping it now would they?
- janalsncm 4mo agoIt’s possible for something to have diminishing returns. Having a speed limit does not imply the utility of driving is zero.
- stinkbeetle 4mo agoThat does not follow. Many things have diminishing returns curves.
- butlike 4mo agoYes, but a curve trends to zero. A cap is a step function to zero. I think they're saying there's no point in removing those diminishing return gains if there's still positive value to be had.
- stinkbeetle 3mo agoThe cap would be around the point where marginal cost exceeds benefit.
- butlike 3mo agoHow do you measure that? Benefit seems like an intrinsic value to me
- tyre 4mo agoNote that the person I'm replying to didn't say "positive return." They said "one iota of value." In addition, as other commenters have pointed out, diminishing returns is a real phenomenon.