Nice work. What about satellite competition down the road? Also, after the Helium community call last night, they are proposing completely redesigning the blockchain and the Tokenomics.
Jan 27, 2022·edited Jan 27, 2022Liked by MoneroMahesh
Nice work on this writeup. You mention HNT is cheap and reference that it trades at 6x revenue. However, the cash flows are captured by the miners, not passive holders. From where is the actual token value derived? I don’t believe there is a staking mechanism that creates a yield to holding the token itself like Ethereum for example (and you probably wouldn’t want to burden the unit economics of miners by forcing them to stake to earn tokens either).
And the issue with using % T Mobile Market cap is that TMUS captures value in a traditional way, through directly capturing revenue and earning a stream of cash flows. Helium appears to be almost a franchised model where the franchisor’s royalty rate is zero, so even if Helium achieved high penetration of TAM, why would it lead to the token being valuable?
The token velocity problem seems to apply here.
I’ve seen others refer to the burn and mint mechanism as the source of value but I have not seen a clear explanation of this. I know Tushar has been very thoughtful and creative about this point but I don’t fully get how it imparts value to the token. Getting people to understand this / explaining it to people in a clear way I think would be tremendous for driving investment demand for the token.
Understanding how to convert different operating cases for KPIs to valuations is critical for assessing the distribution of outcomes here.
Moreover, the token needs to be fundamentally valuable for the yield to miners to exist as well, unless we think pure speculative demand will be enough to keep prices sufficiently high to create an attractive ROI to the miner.
I would love a copy of the deck for this. Thanks so much. Ken
Nice work. What about satellite competition down the road? Also, after the Helium community call last night, they are proposing completely redesigning the blockchain and the Tokenomics.
Nice work on this writeup. You mention HNT is cheap and reference that it trades at 6x revenue. However, the cash flows are captured by the miners, not passive holders. From where is the actual token value derived? I don’t believe there is a staking mechanism that creates a yield to holding the token itself like Ethereum for example (and you probably wouldn’t want to burden the unit economics of miners by forcing them to stake to earn tokens either).
And the issue with using % T Mobile Market cap is that TMUS captures value in a traditional way, through directly capturing revenue and earning a stream of cash flows. Helium appears to be almost a franchised model where the franchisor’s royalty rate is zero, so even if Helium achieved high penetration of TAM, why would it lead to the token being valuable?
The token velocity problem seems to apply here.
I’ve seen others refer to the burn and mint mechanism as the source of value but I have not seen a clear explanation of this. I know Tushar has been very thoughtful and creative about this point but I don’t fully get how it imparts value to the token. Getting people to understand this / explaining it to people in a clear way I think would be tremendous for driving investment demand for the token.
Understanding how to convert different operating cases for KPIs to valuations is critical for assessing the distribution of outcomes here.
Moreover, the token needs to be fundamentally valuable for the yield to miners to exist as well, unless we think pure speculative demand will be enough to keep prices sufficiently high to create an attractive ROI to the miner.
Very well researched. You noted that you can share the full deck if desired, can you please send along?