$based-onomics 101

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a thread

what's $based?

Based protocol is an art project that goes by the crypto moniker: “game theory for degenerates” http://based.money 

$based is an Ethereum ERC20 token with a 100,000 fixed supply

it's currently in final hours of its initial mining/farming run.

as we speak, degens r throwing ~$1,000+ $sUSD funny munny just for a chance to own a 1 $based masterpiece

Admin keys to the protocol were provably burned a few weeks ago, so $based is Exhibit A of an “unstoppable application” running on Ethereum

To appreciate the aesthetic & econ of $based, one must recall $AMPL, a token that $based draws much inspiration from, but also contrasts itself to.

$AMPL (a VC-backed project) made a giant breakthrough in tokenomics by introducing hardcoded “rebase” events into token issuance, programmatically increasing or decreasing *supply* to continuously nudge prices towards a stable-ish USD peg price.

This is why $AMPL was able to market itself as a crypto “pizza money” -- with potential to become the final boss stablecoin in the mutli-crypto economy already undergoing a Cambrian explosion in different stablecoins pegged to the USD.

There’s one big hiccup with $AMPL, tho.

It’s basically a for-profit money scheme where rebase arbitrageurs (VCs, whales) enjoy gross info asymmetry wrt rebase events.

& VCs dumping on plebs is a shitty pizza.

$based tries to solve the problem of wealth concentration (+ misaligned incentives) in a couple of ways: a fair launch that limited staking to ~$12,000 per account; no pre-mine, etc.

This is vitally imp for $based-onomics, so we'll return to it in a bit.

So around August 10, $BASED launched its now-legendary meme game.

Don’t forget, based is performance ART!

so ofc Crypto OGs pounced.

If u don’t get the refs, that’s cool, just ask around.

Three weeks later on the eve of the very first rebase, ~1,300 had bought or farmed $based.

Over the coming weeks / months / years, keep an eye on # of addresses; this is a crude but imp metric in $based-onomics.

So, now to “monetary policy” of this unstoppable performance art piece. U can find & audit the script yoself, but here’s a snap from the site. It’s hilariously simple. Like, lol.

“This can’t be serious?” u think, until u remember this is MIRROR image of USD monetary policy. lol

At heart, $based is one of crypto’s many answers to brrrrrr

but it's soooooo much more than that too -->

In many ways, $based is crypto’s most daring answer to brrrrrr …

bc like $USD, $based needs ever-growing demand

else 1st neg rebase may end up being $based’s last rebase!

so, how can autonomous software create demand for the bits & bytes it crunches & modulates?

well, it can’t --

pumping demand falls to 1,297 degens like ur humble vegan servant here, each performing roles in this unfolding crypto drama https://twitter.com/EthVegan/status/1301273284399435776?s=20

many $based degens r hardcore committed actors

others may want just a bit role, anxious to snag a showbill & hawk it on eBay for a quick 10x - lol

but whoever’s directing this motion picture right now is a bona fide genius. The $based spectacle is HOT! https://twitter.com/EthVegan/status/1301313489420468224?s=20

Ok, so we know memes alone can drive demand sky high

just look at BTC

But memes alone can’t sustain demand

just look at BTC https://twitter.com/SBF_Alameda/status/1300964095244431360?s=20

So how to make demand?

Especially since $based is competing w/1000s of other munnys saying they're best & brightest

2 main ways to drive demand for a money: memecraft & real econ utility

1) based memecraft

2) but what can you do w/based? what’s its real econ utility?

We know that based is going to be stakeable & we’re now even getting dex teasers @ http://swap.based.money 

all that's awesome - "yay, another DeFi coin!" Ethereans muttering under their breath.

But $based isn't your garden-variety flipperooni affair. There's really MUCH more.

But $based’s core economic utility prop may well be the rebase mechanism itself:

- non-basers need $based to admire as art, but also to potentially trade for other things
- basers need non-basers to become basers
- basers incentivized to take profits, but still stay based!

so, what role shd u play in dis $based crypto game?

u do whatever u want to do; it’s crypto!!!

but here my ground rules for thinking abt $based gamers’ dilemma:

1) team sport
2) rules must be clear
3) everyone must understand
4) more new hands =
5) ALL hands stronger

1) it’s a team sport & if played as team sport, *every* one of today’s 1,300 basers is holding a provably jackpot-winning lotto ticket, but the ticket can only be redeemed *slowly* & patiently

Swift exit doesn’t just harm the team, it directly harms u as player. 10x v. 10000x!!!

2) 1st basers *must* state the GT rules as clearly as possible for new-basers (see #1)

3) self-explanatory https://twitter.com/EthVegan/status/1301168838654873601?s=20

4) 1st basers (especially large holders) *must* sell to increase $based velocity & put as much $based into as many *strong* hands as possible

the larger the distribution of $based, the greater its value

if u read this far, hugs & kisses, Happy Rebase Day!

FYI, I've got zero connection to the project other than falling in love with the aesthetic & the bravado. Well done basers!!! Proud of you!

Pump those strong hands. Share this gift responsibly :)

stay $based fam!