Most people in crypto think in the very near future. They aren't investing for returns years from now. They want strong returns next week. But Lisa JY Tan, founder of Economics Design, takes the long view.
Why it matters: Tan and her team work with companies to design the economics of their token projects, which have become more complicated since Bitcoin started with its simple economic model.
What they're saying: Even the people who are really in crypto for the ideas have too short of a time horizon.
Context: Bitcoin started with this idea: a fixed supply of 21 million bitcoin doled out on a predictable schedule over 100+ years.
Of note: The hottest topic for policy makers in cryptocurrency is stablecoins. Congress keeps teasing some kind of legislation, for example.
Yes, but: Governments are pulling an end run on crypto with central bank digital currencies (CBDC).
What we're watching: It is very in vogue in crypto now to mock the idea of Terra, which broke crypto in May, or any attempt at an algorithmic stablecoin, but Tan still believes there will be a functional software-powered token one day.
The bottom line: The original decentralized stablecoin is MakerDAO's dai, and right now it's teasing the idea of unpegging from the U.S. dollar. If it doesn't now, eventually some big stablecoin will, in Tan's view — once crypto is huge and the models more sophisticated.
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