Productive Capital in Cryptonetworks

Thus far, cryptonetworks have used their native asset to entice early investment in their economies via two primary pathways:

  • Minting to supply-siders that install productive capital

  • Selling to investors that contribute investment capital

While investment capital can ultimately be converted into productive capital, the two are not synonymous, and value doesn’t always make the leap from investment capital → productive capital. Sometimes investment capital can waste away on balance sheets like unused kindling. The question comes down to who is first prioritized, the supply-side that installs the productive capital or the investors that float the investment capital?

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