At the moment, the FOX token value comes mostly from its LP programs and DeFi endeavors. I am a strong believer in the utility value of a token. ETH 2.0 will eventually come, although the process has been painful and lengthy to watch. But sooner or later, the FOX gas cashback will no longer be necessary, and users will have no real incentive to use the ShapeShift platform unless there are new very enticing value-adds for the token. (Although I hear that some awesome things are going to be open-sourced soon, so definitely excited to see that!)
I’m also a huge believer in diversification. At the moment all the talk seems to be around financial diversification. This whole time I’ve been thinking, why isn’t anyone talking about value-adding diversification?
Ultimately, value provided by the token always outshadows value provided by staking or depending on third party DeFi programs.
Outside of my main job and my participation in the DAO, I’m currently in several other projects, which I truthfully wanted to leverage the DAO for the benefits it could bring me, and of course ultimately help grow the DAO’s treasury as well as increase token demand.
As I am preparing to launch a NFT mint/marketplace specifically targeted towards subreddits and communities that may not be very well versed in crypto to make it easy for them to get in the NFT craze, I thought to myself, how can this benefit FOX? How can FOX help this project? Because it shouldn’t be a one-way relationship, right? I mean, maybe discounted prices for FOX holders? Staked FOX needed for free minting? There’s a million ways I guess, but it’s a one-way relationship.
Same goes with my endeavors with game3.js – As we are converting old HTML5 games into tokenized, revamped games with NFTs, in-store purchases, etc., I kept thinking about ways to integrate FOX and leverage the community of the DAO. And yet again, I am at a brick wall. Why use FOX when we can create our own token and use Polygon or xDai which are much more suited for these types of things at the moment?
After a couple years in AI and dataset training, I saw the huge growing demand for residential and mobile proxies. While we’re still working out the kinks, we have a PoC (without blockchain, but the feasability) successfully run where people can rent proxies P2P instead of paying one of the 5 corporations that are controlling the enterprise proxy market. This system requires masternodes and resource providers, so that takes FOX out of the equation.
I’ve been waiting for a discussion on getting FOX on xDai (with liquidity) and Polygon, then maybe it would make more sense. But it seems everyone is too knee-deep and crazed over the DeFi world that they fail to realize that the utility function of a token is one of the main drivers of price, not the LP programs.
I truly believe in the vision, I will continue to contribute, and I will forever cheer for FOX. But if we want to really drive up demand for the token, we need new utilities, fast. Admittedly this DeFi revolution came as a sort of “whoah” moment for me as I missed out on its growth, so I may be biased. But relying the future of ShapeShift on the success and continuation of the DeFi world is, in my humble opinion, dangerous and foolish. Just like forking a coin and changing one line and rebranding it as something new, just like investing tens of thousands of dollars on now useless masternodes, just like relying on ICOs and then IEOs to 100x your wealth, sooner or later, the cryptosphere will evolve and change. I’m not saying DeFi will be gone or unprofitable, but there the landscape will look different in another 3 years.
And this ShapeShift Foundation that is to be formed soon – we have almost no idea what it is, how powerful it will be, and who the 12 members will be and and their roles/duties. Will ShapeShift be a “true DAO” with this foundation? We don’t know yet, cause we don’t know what it is.
So, how do we create an ecosystem where developers or projects can truly build on top of FOX? Does it even make sense? Would FOX support proposals that are not built with FOX embedded into its design somehow? If so, what would be the best way to mutually benefit? These are all sincere questions I am asking. Both for selfish reasons, as well as for reasons that concern me about FOX’s current value proposition.
edit: and now you can see why I only sleep two or three times a week