I love your framework for assessing risk in tokens. I know it's in the context of stablecoin but I think it applies more broadly to all types of tokens (esp. governance/utility tokens for DAOs). Your thinking of risks reminds me of how think of risk in traditional finance - systemic (market) risk and portfolio-specific risk. The latter you can diversify away, while the former is the minimum risk you have to assume for playing in the market.
I wonder, with respect to DAO governance tokens, would there be another category of idiosyncratic risk related to community?
I love your framework for assessing risk in tokens. I know it's in the context of stablecoin but I think it applies more broadly to all types of tokens (esp. governance/utility tokens for DAOs). Your thinking of risks reminds me of how think of risk in traditional finance - systemic (market) risk and portfolio-specific risk. The latter you can diversify away, while the former is the minimum risk you have to assume for playing in the market.
I wonder, with respect to DAO governance tokens, would there be another category of idiosyncratic risk related to community?
Yes, that's how we are looking at risk. Good question. that will be under idiosyncratic risk called governance risk.