Interesting top down valuation for Chainlink. We borrowed some of your metrics here for our internal thesis and valuation, specially given that Chainlink has gone fully fledged multi product since then
Aug 13, 2023·edited Aug 13, 2023Liked by David Attermann
Nice analysis. How do tokenomics factor? I don’t think just because Chainlink captures a large % of TAM do revenue flow so obviously to tokens, right? I know they have high emissions, and iirc the people who pay for Chainlink services can just pay in USD, not LINK.
ty sir. this analysis only considers the value of USD flowing to LINK stakers, not actual LINK token utility (since stakers get a share of the network's cash flow). so any utility from the token is actually upside to the model...agreed its less clear today. I imagine all networks & apps will accept fiat in the near future, which can automatically swap for the required payment/gas tokens (resulting in buying pressure for the payment/gas token). this would give LINK both utility & USD yield; another reason my model is conservative - it only assumes LINK will derive value from USD yield. to your emissions point, this analysis assumes 10B (max supply) of tokens are in circulation by 2030.
Interesting top down valuation for Chainlink. We borrowed some of your metrics here for our internal thesis and valuation, specially given that Chainlink has gone fully fledged multi product since then
Nice analysis. How do tokenomics factor? I don’t think just because Chainlink captures a large % of TAM do revenue flow so obviously to tokens, right? I know they have high emissions, and iirc the people who pay for Chainlink services can just pay in USD, not LINK.
ty sir. this analysis only considers the value of USD flowing to LINK stakers, not actual LINK token utility (since stakers get a share of the network's cash flow). so any utility from the token is actually upside to the model...agreed its less clear today. I imagine all networks & apps will accept fiat in the near future, which can automatically swap for the required payment/gas tokens (resulting in buying pressure for the payment/gas token). this would give LINK both utility & USD yield; another reason my model is conservative - it only assumes LINK will derive value from USD yield. to your emissions point, this analysis assumes 10B (max supply) of tokens are in circulation by 2030.
Got it. Thanks!