Staking & Incentives in Web3 | Shima Capital, Carl Hua | Web3 Wednesdays Ep. 11

Web3 Wednesdays

Aug 31 2022 • 25 mins

Staking is a controversial topic, and web3 incentives aren't always well-aligned. What should builders & investors be on the lookout for?

Join guest Carl Hua, CTO & Investment Partner over at Shima Capital, an early stage VC firm that targets disruptive crypto and blockchain technology companies. They’ve invested broadly across the space with holdings in gaming, DeFi, infrastructure, and broad DAO entities. Carl himself has a well-decorated past, where previously led research & development at Ripple’s open source business unit, was the Chief Architect at Celsius Network, and was the CTO for Logos Network. All that in addition to contributing to real-time flight software for NASA at JPL in a previous life. Carl’s experience across the space in building and evaluating both the financial machinations and the technical components of early stage ventures within crypto at large make him a fantastic resource for learning more about how we should be considering big ideas like staking, valuation, and key product performance indicators.

Carl's Twitter: https://twitter.com/carlhua
Shima Capital Twitter: https://twitter.com/shimacapital
Sam's Twitter: https://twitter.com/SamPeurifoy
Kapital DAO's Twitter: https://twitter.com/KapitalDAO

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Read the companion piece to this episode here: https://medium.com/@sampeurifoy/web3-incentive-misalignment-e08c13045d6e

Listen on Buzzsprout: https://www.buzzsprout.com/2006743/11225877

Watch on YouTube: https://youtu.be/x0iSx19slgc

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0:00 - Intro
1:10 - Staking, Controversial Viewpoints
5:28 - "Purchasing Users" With Staking
7:07 - Locking & Vesting, "ve- Economics"
11:38 - Economic Value of Voting
13:08 - Staking Impact on Funding Value
14:53 - Staking in Games
18:28 - How Can Staking Support KPIs?
22:12 - Staking as App Consensus
22:58 - Advice for Builders
24:45 - Outro

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Sam is the CEO of Playground Labs, a web3 protocol dev organization, and Partner & Head of Interactive at Hivemind Capital, a crypto-focused multi-strategy fund. Follow him on Twitter @SamPeurifoy. Web3 Wednesdays are sponsored by the Kapital DAO, the leading provider of institutional web3 gaming asset management tools.

The views expressed here are those of the individuals quoted and are not the views of the authors' employers or affiliates. Certain information contained in here may have been obtained from third-party sources, including from portfolio companies of funds managed by the authors' employers or affiliates. While taken from sources believed to be reliable, the authors have not independently verified such information and make no representations about the enduring accuracy of the information or its appropriateness for a given situation. In addition, this content may include third-party advertisements; the authors have not reviewed such advertisements and does not endorse any advertising content contained therein.

This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by the authors or their affiliates.

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